The US dollar continued to soar against the Pakistani rupee, reaching a new historic high in the inter-bank market on Monday.
The Pakistani rupee continued to weaken, shedding an additional Rs1.60 against the US dollar, which closed at Rs172.78 in the inter-bank market.
With a fresh decline of 0.93%, the rupee has depreciated 9.67% (or Rs15.24) since the start of the current fiscal year on July 1, 2021, data released by the State Bank of Pakistan (SBP) revealed.
According to data of the central bank, it has cumulatively dropped 13.46% (or Rs20.51) since its recent high of Rs152.27 against the greenback recorded on May 14, 2021.
Last week, speaking at the launch of the Kisan Portal, Prime Minister Imran Khan had said that the pressure on the Pakistani rupee is temporary and will be over soon.
Economists say that the main reason for the rise in the value of the dollar and the depreciation of the rupee is Pakistan's current account deficit and IMF's demand for further devaluation of the rupee.
Analysts had earlier predicted that the downtrend is expected to end soon as analysts suggest that the successful conclusion of the discussion between the IMF and Pakistan to resume a $6 billion loan programme will stabilise the rupee value at around current levels.
“The rupee volatility will end if policy talks between Pakistan and the IMF conclude successfully during the three days from October 13 to 15,” Pakistan-Kuwait Investment Company Head of Research, Samiullah Tariq,said.
However, in case the two sides fail to find a middle ground and talks end on an unsuccessful note, the rupee may cross several limits on the downside.