KARACHI: On Tuesday, the rupee dropped to a new all-time low against the US dollar. The local currency is being traded at Rs233 in the interbank market. The greenback gained Rs3.12 by 12:33 pm.
According to Mettis Global, the rupee lost value because of oil’s letter of credit (LC) payments. Mettis added that State Bank of Pakistan had shown reluctance to issue reserves for controlling the volatility of the exchange rate.
Since Imran Khan was ousted as prime minister, the dollar has gained 21.3 per cent more value against the Pakistani rupee due to political turmoil and the ever-widening trade deficit.
The dollar dropped to Rs204.56 in July’s first week. Rupee showed more progress after the staff-level agreement was reached with IMF. However, the local currency has shown poor performance since then. During last week, the dollar gained 8.25 per cent against the local currency.