KARACHI: The Pakistani rupee continued to lose grounds unabated for the 14th consecutive session on Wednesday and closed at a record low of Rs239.65 against the US dollar in the interbank market during intraday trade amid floods and a shortage of greenback in the country.
The local unit last made a historic low of Rs239.94 on July 28, 2022.
In the interbank market, the local unit lost Re0.74, or 0.31%, and fell to Rs239.65 per dollar, down in value from the previous close of Rs238.91 against the dollar.
The dollar now stands only Rs0.29 short of the all-time high level of Rs239.94.
The rupee has been one of the worst performing currencies in the emerging markets and has fallen by nearly 9% so far this month owing to wide-ranging factors.
Rupee worst-performing currency
The Pakistani currency has become the worst-performing currency in emerging markets in September as the cataclysmic floods halted economic activities and caused total accumulated losses of over $30 in the country.
The local unit has weakened by approximately 27%, or over Rs30, against the US dollar since the start of the current fiscal year 2022-23.
There are fears it may further lose its value, however, Pakistan is not the only country that is facing the depreciation of its currency. There are a host of other countries that are facing a similar currency weakness, which is making their economies unstable and investors pensive.
Speaking to Geo.tv a day earlier, former advisor to Finance Ministry Dr Khaqan Najeeb said the dollar remained firm at a two-decade high versus major peers, as investors are looking to the Federal Reserve to continue its aggressive interest rate hiking.
“The US dollar is in a strong momentum for time being,” he maintained.
The analyst elaborated that the long period of steady growth and low inflation the US economy had before COVID-19 is being replaced by a “higher inflation globally”.