Rupee slumps to historic low against US dollar 

Karachi: The Pakistani rupee has slumped to an all-time low against the US dollar, plunging for a second day in the interbank market.

The US dollar rose by Rs 1.34 during the business in the interbank and is being traded at Rs190 for the first time in history, surpassing Tuesday’s record low of Rs188.66. 

Finance experts regard this downfall of local currency due to two main reasons. First, due to uncertainty regarding the revival of the International Monetary Fund (IMF) loan programme. And secondly, due to the depleting foreign exchange reserves. 

Moreover, an absence of direction from the government on significant economic policies as well as an unstable political situation in the country, has also led to an upward trend in the US dollar rate. 

Yesterday, the value of the greenback surged by Rs0.82 in early trade and later traded at Rs188.35 in the interbank market, hitting a historic level. 

Interbank closing #ExchangeRate for todayhttps://t.co/Sm3ZeEIgfY pic.twitter.com/afuesryKui

— SBP (@StateBank_Pak) May 10, 2022

As per forex dealers, the exchange rate remained under pressure as the American dollar continued its upward spiral against the Pakistani currency.  

The forex dealers have further shared that the greenback is being sold above Rs189 in the open market. 

Experts stated that the surging dollar and gloomy macros will continue to put pressure on the local unit. 

In the meantime, the State Bank of Pakistan's (SBP) foreign exchange reserves fell by $328 million to $10.558 billion during the week.