KARACHI: According to the Exchange Companies Association of Pakistan (ECAP), the Pakistani rupee on Monday fell to an all-time low of 215 against the US dollar in interbank trade as a result of the ruling PML-N's thrashing in the Punjab by-elections, which has caused political unrest in the nation, The News reported.
During Monday's intraday trade, the rupee lost 4.3 rupees against the dollar. We don't yet know where the local currency will wind up after trading for the day. The local currency has reached an all-time low because the dollar is currently selling for Rs 215.25 on the interbank market.
The rupee hit a record low versus the dollar on June 21 when it closed at 211.48, and since then, the currency has remained erratic.
Meanwhile, with the bears controlling trading at the bourse, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) is also down. As of 11.34 a.m., the index was down over 550 points, trading at 41,532.46 points.
According to The News, Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company, blamed the weakening of the rupee on political unpredictability and pressure on import payments. The by-election results on Sunday provided clarity, but the market is still waiting for a future plan, analyst said.
"Investors are speculating on the direction that the market will take as it searches for one. Does the coalition government want to call early elections?" Tariq said.