ISLAMABAD: The Pakistani rupee dropped to a nearly one-year low against the US dollar as the greenback hit Rs167 on Thursday, Pakistani media reported, as an air of uncertainty surrounded the exchange markets.
The greenback touched its lowest against the rupee on May 9 when it was traded at Rs151.17. Since then, it has been appreciating and hit Rs167 on Thursday, just close to the highest price of Rs168.2 in August 2020, the Daily Dawn newspaper reported.
The value of the dollar has increased by 10.5 percent against the rupee in the last four months.
Bankers and currency dealers have been trying to understand why the rupee has been falling, despite growing foreign exchange reserves.
“It may be the widening trade deficit or fear of higher current account deficit in FY22 and increased requirement of US dollars for debt servicing, but right now the exchange rate is not stable,” a currency dealer in the interbank market told Dawn.
Nobody can ascertain the limit of the devaluation of the rupee, which is alarming as the inflow of high cost of imported goods is creating inflation, he added.
There has been no intervention from the State Bank of Pakistan (SBP) to stop the devaluation and bring stability to the rupee’s value.
While presenting the monetary policy last month, SBP Governor Dr. Reza Baqir had said the current account deficit was going to be higher than FY21 and would be between 2-3 percent, while the exchange rate would respond to this deficit in the form of the dollar’s appreciation.
“We are not able to judge where the limit of this devaluation of local currency is, but there are concerns among the stakeholders about this strange exchange rate stability,” the Dawn report quoted a senior banker as saying.
Currency dealers in the open market were also unable to predict an end to the depreciation in the rupee’s worth.
On Thursday, the demand in the open market was still very low but the dollar got a higher price at Rs167.80, according to the report.
Pakistan’s trade deficit also widened by 133 percent to $4.05 billion in August, reflecting mounting pressure on the exchange rate due to higher demand for dollars for imports.
Pakistani rupee slides to one-year low against dollar
https://arab.news/54trc
Pakistani rupee slides to one-year low against dollar
- The greenback hit Rs167 on Thursday as uncertainty surrounded exchange markets
- The value of the dollar has risen by 10.5 percent against the rupee since May
Pakistan PM reviews internal, regional security after Khamenei killing, Afghanistan strikes
- At least 16 people were killed and dozens more injured in clashes over killing of the Iranian supreme leader
- The unrest came amid Pakistan’s offensive against Afghan forces, which officials say has killed 415 fighters
ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday convened a high-level meeting to review internal and regional security situation, Sharif’s office said, amid nationwide protests over the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei and Islamabad’s ongoing military operation against Afghan forces.
Protests erupted in several cities across Pakistan on Sunday after the killing of the Iranian supreme leader in US-Israeli joint strikes, with at least 16 people killed and dozens more injured in clashes with law enforcement agencies.
The unrest came amid Pakistan’s ongoing military operation against Afghan forces following a series of tit-for-tat strikes by the neighbors which began after Islamabad hit what it said were Tehreek-e-Taliban Pakistan and Daesh camps in Afghanistan on Feb 21-22.
During Sunday’s meeting, officials briefed PM Sharif and other participants about the country’s internal situation and security arrangements in place to thwart any untoward incident, according to Sharif’s office.
“Pakistan’s role and various measures to establish peace in the region were reviewed at the meeting,” Sharif’s office said. “The situation in Afghanistan was also reviewed in detail at the meeting.”
The development came shortly after Pakistan’s Information Minister Attaullah Tarar said that 415 Afghan Taliban fighters had been killed and more than 580 wounded since the latest phase of hostilities between the neighbors began on Thursday.
Afghan officials earlier said that dozens of Pakistani soldiers had been killed and several Pakistan posts had been captured by their forces. None of the casualty figures or battlefield claims from either side could be independently verified.
Earlier in the day, gunshots and explosions were reported in Kabul. Afghan government spokesperson Zabihullah Mujahid said the sounds were the result of Afghan forces targeting Pakistani aircraft over the capital.
“Air defense attacks were carried out in Kabul against Pakistani aircraft,” Mujahid wrote on X. “Kabul residents should not be concerned.”
KHAMENEI KILLING ‘VIOLATION’ OF INTERNATIONAL LAW
Separately, Sharif said the killing of Khamenei was a “violation” of international law.
“People of Pakistan join the people of Iran in their hour of grief and sorrow and extend the most sincere condolences on the martyrdom [of Khamenei],” he wrote on X.
“Pakistan also expresses concern over violation of the norms of international law.”
EVACUATION OF PAKISTANIS FROM IRAN
At Sunday’s meeting, officials of the foreign ministry also briefed the prime minister on the evacuation of Pakistani citizens from Iran, according to a statement issued from Sharif’s office.
“The evacuation of Pakistani citizens from Iran is being made possible through Azerbaijan,” they were quoted as saying.
Pakistan earlier asked its citizens in Gulf countries to exercise caution, avoid travel and strictly follow official adviseries, amid escalating tensions following the killing of Khamenei.
The foreign ministry shared emergency contact details of Pakistani embassies and consulates for the facilitation of Pakistani nationals abroad.
