Pakistani rupee remains unstable, plunges to record low of 210 against US dollar

In line with market expectations, the Pakistani rupee has plunged further and crossed the 210 threshold against the US dollar for the first time in the interbank market on Monday.

The domestic currency was available at Rs210.19 against the greenback in the interbank market, Geo News reported.

This is the seventh consecutive working day of free-fall in the rupee, losing approximately Rs6, or over 3 per cent, to date.

The central bank has seemed helpless in controlling the speculative fall in the rupee as demand for the greenback continues to soar due to quarter-end payments pressure.

"The currency will continue to fall until Pakistan manages to strike a staff-level agreement with the International Monetary Fund (IMF)," AA Commodities Director Adnan Agar said.

The analyst was of the view that the investors' confidence is completely shattered which can only be strengthened by positive development on the IMF front, reports Geo News.

Agar also mentioned that depleting foreign exchange reserves has triggered panic buying giving speculators a chance to play with the demand and supply of the greenback.

Meanwhile, Exchange Companies Association of Pakistan (ECAP) Chairperson Malik Bostan identified widening trade deficit, political instability, and declining foreign direct investment as major reasons behind the devaluation of the local currency.

"Political stability is key for economic development," he said, adding that former prime minister Imran Khan's call for another long march may adversely affect the rupee-dollar parity.

Indo-Asian News Service