KARACHI: Pakistani rupee fell to a new record low beyond 204 against the US dollar today after shedding Rs1.75 in the interbank market amid IMF uncertainty.
Experts believe widening current account deficit and fast-depleting foreign exchange reserves are factors behind the US dollar rise and pressure on the local currency. The rupee slides further as Finance Minister Miftah Ismail hinted that International Monetary Fund expressed concern about Pakistan’s budget, however, he mentioned that the government is confident it can make changes to satisfy the lender.
Comment of new financial chief deemed negative by the currency market that is already performing poorly. Last week, the Pakistani rupee depreciated nearly 2.2 percent against the US dollar, shedding value in three of the five sessions as falling foreign exchange reserves. The development comes as Pakistan’s foreign exchange reserves depleted to a critically low level of six-week import cover at $9.2 billion.