KARACHI: On Thursday, the local currency dropped to historic low value against the greenback as it closed at Rs189.25 during the interbank trade. Earlier on Wednesday, the rupee had closed at Rs186.13 in the interbank market and Rs187 in the open market.
Regarding the effect of political crisis on rupee’s value, the Chairperson of the Forex Association of Pakistan, Malik Bostan said that Supreme Court should intervene and issue a ruling on the current political situation to ease the conditions. According to economists, the pressurising situation occurred after International Monetary Fund paused the bailout programme of $6billion.
Analysts also called the rising trade deficit as the primary reason for the devaluation of the rupee. At the moment, the country’s trade deficit has surged to 70 per cent during the first nine months of the ongoing fiscal year.