Rupee closes at record low of 239.65 against US dollar

KARACHI: The Pakistani rupee continued to lose ground for the 14th consecutive session on Wednesday and closed at a record low of Rs 239.65 against the US dollar in the interbank market amid floods in the country and a weakening greenback. .

The local unit last touched an all-time low of Rs 239.94 on July 28, 2022.

In the interbank market, the local unit lost 0.74 rupees, or 0.31%, to settle at 239.65 rupees per dollar, depreciating from the previous close of 238.91 rupees against the dollar.

The dollar is now just Rs 0.29 off its all-time high of Rs 239.94.

The rupee has been one of the worst performing currencies in emerging markets and has fallen by around 9% so far this month due to a wide range of factors.

Rupee was the worst performing currency

The Pakistani currency became the worst-performing emerging market currency in September as devastating floods halted economic activity and caused a cumulative loss of more than $30 in the country.

Since the start of the current financial year 2022-23, the local unit has weakened by about 27 percent or more than Rs 30 against the US dollar.

There are fears that it may lose its value further, however, Pakistan is not the only country facing devaluation of its currency. There are many other countries facing similar currency weakness, destabilizing their economies and unnerving investors.

Speaking to Geo.TV a day ago, Dr Khaqan Najib, former adviser to the Ministry of Finance, said the dollar remained at a two-decade high, as investors looked to the Federal Reserve for continued aggressive interest rate hikes. are watching

“The US dollar is temporarily in a strong trajectory,” he maintained.

The analyst explained that the US economy’s long period of steady growth and low inflation before COVID-19 is being replaced by “higher inflation globally”.