Rupee nosedives to 239.94 against a US dollar

KARACHI: Pakistani rupee continued its free fall and plunged to a record low of 239.94 against a US dollar amid political uncertainty prevailing in the country .

According to the State Bank of Pakistan (SBP), the rupee closed at 239.94, down 3.92, or 1.63pc. Forex Association of Pakistan (FAP) said the rupee lost 4.48, or 1.89 per cent, compared to yesterday’s close of 236.02 by 12:03pm.

As per the economic experts, the downfall of Pakistani rupee against the US dollar is due to the political uncertainty in the country. Political uncertainty has dragged the local unit to historic low against the foreign currency.

However, Moody’s Investors Service and Fitch Ratings said they expect Pakistan to secure the $1.2 billion bailout from the International Monetary Fund (IMF), which may help ease pressure on the country’s currency and forex reserves.

“We assume IMF board approval of Pakistan’s new staff-level agreement” with the lender, said Krisjanis Krustins, a Hong Kong-based director at Fitch told Bloomberg. “This will unlock significant additional financing from the IMF and other multilateral and bilateral sources and may well provide a significant confidence boost to the markets.”