US dollar hits historic high against Pakistani rupee

The Pakistani rupee continued to slump against the US dollar Monday as it sunk to a new low against the greenback,  during intra-day trading in the inter-bank market. 

The Pakistani rupee continued to weaken, shedding an additional Rs1.60 against the US dollar, which closed at Rs172.78 in the inter-bank market.

Last week, speaking at the launch of the Kisan Portal, Prime Minister Imran Khan had said that the pressure on the Pakistani rupee is temporary and will be over soon.

Economists say that the main reason for the rise in the value of the dollar and the depreciation of the rupee is Pakistan's current account deficit and IMF's demand for further devaluation of the rupee.

Analysts had earlier predicted that the downtrend is expected to end soon as analysts suggest that the successful conclusion of the discussion between the IMF and Pakistan to resume a $6 billion loan programme will stabilise the rupee value at around current levels.

“The rupee volatility will end if policy talks between Pakistan and the IMF conclude successfully during the three days from October 13 to 15,” Pakistan-Kuwait Investment Company Head of Research, Samiullah Tariq, had told Geo.tv.

However, in case the two sides fail to find a middle ground and talks end on an unsuccessful note, the rupee may cross several limits on the downside.