Despite modest recovery a week earlier, the rupee continued its downward spiral and hit a new all-time low of Rs 216 at the interbank.
According to the Forex Association of Pakistan, the dollar was trading at a record Rs 216 against the local currency at 3:12pm, up Rs 5, or 2.4%, from the closing rate on Friday.
The dollar had closed at Rs 210.95 last week, making this a sharp increase.
The last peak was reached on June 22, when the dollar hit Rs 211.93 against the rupee, after which it had begun to decline for a brief period and fell to a low of Rs 204.56 on July 4.
The brief gain of strength of the rupee was attributed to the $2.3 billion Chinese inflows that had sustained the currency for a short period of time. However, the greenback continued its upward streak and gained Rs 2.38 in the interbank on July 5, making it the first appreciation of the new fiscal year.
The news of the staff-level agreement with the International Monetary Fund (IMF) on July 15 managed to bring about a modest recovery, however, this recovery was short-lived and the very next day the dollar continued to rise.
According to a report by Dawn News, the continued depreciation of the rupee is due to the ongoing political uncertainty. The results of the by-elections depict an uncertainty about the future of the coalition government, which makes markets uncertain about the new setup.
According to the Forex Association of Pakistan, the dollar was trading at a record Rs 216 against the local currency at 3:12pm, up Rs 5, or 2.4%, from the closing rate on Friday.
The dollar had closed at Rs 210.95 last week, making this a sharp increase.
The last peak was reached on June 22, when the dollar hit Rs 211.93 against the rupee, after which it had begun to decline for a brief period and fell to a low of Rs 204.56 on July 4.
The brief gain of strength of the rupee was attributed to the $2.3 billion Chinese inflows that had sustained the currency for a short period of time. However, the greenback continued its upward streak and gained Rs 2.38 in the interbank on July 5, making it the first appreciation of the new fiscal year.
The news of the staff-level agreement with the International Monetary Fund (IMF) on July 15 managed to bring about a modest recovery, however, this recovery was short-lived and the very next day the dollar continued to rise.
According to a report by Dawn News, the continued depreciation of the rupee is due to the ongoing political uncertainty. The results of the by-elections depict an uncertainty about the future of the coalition government, which makes markets uncertain about the new setup.