KARACHI: The Pak Rupee (PKR) fell to another record low against the dollar on Tuesday to end at Rs169.97 in the interbank foreign exchange market.
The rupee lost 37 paisas against the dollar to end at a new historic low of Rs169.97 from previous day’s record low of Rs169.60 in the interbank foreign exchange market.
Currency experts said that due to higher international oil prices and other external payments kept the dollar demand high.
They said that widening of the current account deficit and trade deficit during the first two months also put pressure on exchange rates.
The rupee has lost around 12.43 against the dollar since July 01, 2021.
Analysts said persistent depreciation of the rupee could further increase imported inflation, particularly impacting petroleum products, edible oil, and industrial raw materials. They noted that rising import payments and weakening foreign exchange reserves were creating additional pressure on the local currency.
Market participants are also closely monitoring negotiations with international lenders and upcoming monetary policy decisions, which may influence investor confidence and exchange rate stability in the coming weeks. Exporters, however, believe that a weaker rupee may improve export competitiveness in global markets, though higher production and energy costs continue to remain a major challenge for businesses and manufacturers across various sectors of the economy.