ISLAMABAD: The Pakistani rupee (PKR) hit an all-time low against the US dollar on Tuesday, trading at 185.40 PKR in intraday interbank trading, up 1.31 PKR from 184.09 on April 1.
The local currency has reportedly reached the 185 PKR barrier for the first time in Pakistan's history. In the recent month, it has lost almost 7 PKR against the US dollar.
The Pakistani rupee has remained in a downward spiral for the past few days, owing to the US dollar's recent gains against other major world currencies. The current drop, however, was caused by an uncertain political climate and a stalled IMF programme.
"The Pakistani currency is falling because of concern about the continuation of the IMF programme, which is contingent on the formation of the caretaker government," said Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company. On Monday, the IMF stated that it would continue to support the "newly established government" and that it would engage in policy discussions with them to learn more about their plans for the loan. Meanwhile, some currency dealers predict that the rupee will continue to be under pressure this week due to the country's never-ending political stalemate.
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