Pakistan's rupee fell for the fourth successive time, depreciating to a record low against the US dollar in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the PKR closed at 171.20 against the USD, a day-on-day depreciation of seven paisas or 0.04%. On Wednesday, the PKR dropped to the then-record low of 171.13.
Market experts believe the pressure on PKR is likely to persist, as all eyes are glued on outcome of the delayed 6th review of the International Monetary Fund's (IMF) Extended Fund Facility.
Pakistan’s rupee has depreciated over 11% since its recent high in May this year, on account of a widening current account deficit, and rising imports.
Analysts have also expressed concerns that the country’s imports are expected to grow up to $70 billion this year as most of the raw material is being imported.
“If the increase is in volume, it is a good sign and shows development. But if the increase is in prices, it is not a good sign and a vital factor behind inflation,” said Ateeq ur Rehman, an economic & financial analyst.
The impact of PKR devaluation has also been felt on the stock market with listed companies' earnings also set to take a hit.
“Its impact would be felt at the micro-level as well because the prices of raw material of our industries would increase, which will impact their margins, and demand will be curtailed, which could taper off growth as well,” said Arif Habib Limited CEO Shahid Ali Habib earlier.
Inter-bank market rates for dollar on Thursday
BID Rs 171.15
OFFER Rs 171.25
In the open market, the PKR lost 40 paisas for buying and 10 paisas for selling against USD, closing at 171.70 and 172, respectively.
Against Euro, the PKR lost 50 paisas for buying and one rupee for selling, closing at 197.50 and 199, respectively.
Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 48 and 48.20, respectively.
Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling as well, closing at 45.50 and 45.70, respectively.
Open-market rates for dollar on Thursday
BID Rs 171.70
OFFER Rs 172