Karachi July 20 2022: Pakistan rupee continue to drop against the dollar and closes at 224.91 after touching 226 in the interbank trading as ruling party decided to hold elections on time despite losing majority in the country largest province.
The rupee settle below after touching 226 in the interbank as Finance Minister provide details of funding arrangement at the press briefing held at Islamabad.
Yesterday, rupee falls 6.8 rupees as Fitch revises Pakistan outlook to negative from stable amid increase in political tension despite Pakistan reaches staff level agreement with IMF for release of $1.17 billion under 7th and 8th review of Extended Fund Facility.
Ratings agency Fitch on Tuesday revised its outlook on Pakistan to negative from stable, citing deterioration in country’s external liquidity position and financing conditions since early 2022.
Fitch affirmed Pakistan’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B-‘.
However, SBP says the recent movement in the Rupee is a feature of a market-determined exchange rate system says State Bank of Pakistan.
Under this system, the current account position, relevant news items, and domestic uncertainty together determine daily currency fluctuations.
Recent Rupee depreciation against the US$ is also in large part a global phenomenon. Globally, the US$ has surged by 12% in the last 6 months to a 20-year high, as the Fed has aggressively raised interest rates in response to rising inflation.
Like most advanced and emerging market currencies across the world, the Rupee has depreciated against the US$ since Dec 21. It has depreciated by 18% over this period.
Like most advanced and emerging market currencies across the world, the Rupee has depreciated against the US$ since Dec 21. It has depreciated by 18% over this period.
