KARACHI: The Pakistani rupee broke a stability streak and lost 51 paisas to hit an all-time low against the dollar in the interbank market on Monday.
The greenback reached a historic high of Rs169.6 at the close of Monday’s trading session, according to the State Bank of Pakistan’s data. It stood at 169.08 at the end of last week.
The last time the Pakistani currency touched a record low was on September 15, dropping to Rs169.12 against the dollar.
With the fresh fall of 0.31 percent, the rupee has cumulatively lost 11.38 percent (Rs17.33) of its value since May 14, when the US dollar was as low as Rs152.27.
Pakistan’s currency traders and analysts blame a rising import bill and the Afghanistan situation among other factors for the ongoing depreciation of the national currency.
“Due to higher commodity prices, supply chain bottlenecks and uncertain situation in Afghanistan, demand for US dollar is higher than supply,” Samiullah Tariq, the Pakistan-Kuwait Investment Company’s head of research, told Geo.tv news website.
The country’s central bank has also stayed away from the currency market, saying it wants to adhere to a market-based exchange rate policy. Previously, the SBP used to sell dollars in the market to stabilize the currency.
As the central bank was following a flexible exchange rate, the exchange rate parity was going in favor of the US currency due to higher demand, Tariq added.
Pakistani rupee hits new all-time low against dollar
https://arab.news/mpp99
Pakistani rupee hits new all-time low against dollar
- Greenback closes at historic high of Rs169.6
- Rupee has cumulatively lost 11.38 percent since May 14
Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants
- Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday
- Pakistan’s military says it is only targeting Afghan military installations to avoid civilian casualties
ISLAMABAD: Pakistan’s president on Monday defended his country’s ongoing military strikes in neighboring Afghanistan, saying Islamabad tried all forms of diplomacy before targeting militants operating from Afghan territory, and called on the Taliban government in Kabul to disarm groups responsible for attacks in Pakistan.
Pakistan earlier said it is in “open war” with Afghanistan, alarming the international community. The border area remains a stronghold for militant organizations including Al-Qaeda and the Daesh (Islamic State) group.
“(The Afghan Taliban) must choose to dismantle the terror groups that survive on conflict and its war economy,” Asif Ali Zardari said during a speech to lawmakers, adding that “no state accepts serial attacks on its soil.”
Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Since then, Pakistan has carried out operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions.
Kabul has denied such claims.
In Afghanistan, the deputy government spokesman Hamdullah Fitrat said Pakistan’s military fired mortar shells at a refugee camp in eastern Kunar province, killing three children and injuring three others.
Afghanistan’s defense ministry said Afghan forces carried out strikes targeting a Pakistani military facility near Paktia province, causing “substantial losses and heavy casualties.”
Pakistan’s military did not respond to questions. It has said Pakistan is only targeting Afghan military installations to avoid civilian casualties.
Pakistan has witnessed a surge of violence in recent months and blames it on the outlawed Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP. It operates both inside Pakistan and from Afghan territory.
Islamabad accuses Afghanistan’s Taliban government of providing safe havens for the TTP, which Kabul denies.
The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.
Zardari reiterated Pakistan’s call for talks, saying, “We have never walked away from dialogue.”
The Pakistani leader again accused Afghanistan of acting as a proxy for India by sheltering militant groups.
“Stop being used by another country as a battlefield for their ambitions,” he said.
Zardari cited a recent report from the United Nations Security Council’s monitoring team that described the presence of militant groups in Afghanistan as an extra-regional threat.
