The rupee created history on Thursday, falling to a new low of Rs300.22 in the inter-bank market.
According to data shared by the State Bank of Pakistan on Thursday evening, the rupee opened trading in the inter-bank at Rs299.64. But it lost around 58 paisas or around 0.19% of value during trading.
As a result, the rupee closed the day in inter-bank trading at a value of Rs300.22.
Interbank closing #ExchangeRate for today https://t.co/Jxm8IWczLi#SBPExchangeRate pic.twitter.com/w9i2WBsU9z
— SBP (@StateBank_Pak) August 24, 2023
The rupee had crossed into Rs200 territory on May 19, 2022.
Meanwhile, in the open market, a single US dollar was traded for Rs318.
Analysts say the country is facing the impact of a globally strong dollar following the US Federal Reserve's decision to raise the interest rates to a historical high. As per IMF economists, “In emerging market economies, a 10 percent US dollar appreciation, linked to global financial market forces, decreases economic output by 1.9 percent after one year, and this drag lingers for two and a half years.”
The presence of a grey market for the greenback in the country, supported by questionable economic practices like the Dar-peg and the smuggling of currency to Afghanistan, is a noteworthy concern. Some argue that halting this leakage is exceptionally challenging, while others highlight the involvement of the state whose strategic agendas are allegedly financed by the smuggled currency.