The Pakistani rupee fell by over Rs 1, depreciating to its lowest-ever value at Rs 169.9 against the U.S. dollar in the inter-bank trading on Wednesday. Currency dealers said the US dollar's upward surge began on Wednesday from the onset of trading.
The Pakistani rupee traded at Rs 168.94 against the dollar on Tuesday, which at the time was its lowest ever value.
Chairman of Exchange Companies Association, Pakistan Malik Bostan told the media that the surge in the US currency in the interbank and open market was happening as importers were booking dollars in advance, leading to an increase in its demand. The State Bank of Pakistan has so far not intervened to stabilise the local currency. Bostan warned that if it was not regulated the US dollar would continue its upwards surge and erode the value of the local currency.
Meanwhile, Mettis Global, a web-based financial data and analytics portal, posted that the rupee depreciated by 46 paisa against the US dollar and is being quoted at 169.40/169.60 while trades were reported at 169.50. The Pakistani rupee which now has fallen behind other currencies in the region has been declared the worst-performing currency in Asia.
A financial expert said the erosion in the value of the Pakistani rupee would lead to more inflation in the domestic consumer market and affect the general public. On May 14 this year, the dollar was trading at 151.83 but since then it has experienced a tremendous surge.
Experts said another reason for the rupee's decline could be the government's deadline of September 30 for holders to liquidate Rupees-40,000 prize bonds and many who were liquidating were buying the US dollar. The State Bank of Pakistan had indicated earlier that the dollar could appreciate during the current financial year due to an expected higher current account deficit -- increase of exports over imports. In comparison, the Indian rupee is trading at 73.66 against the US dollar.