The Sri Lankan rupee has been the worst-performing, plummeting 43.9%, with the Laotian Kip battering 24%, Turkish Lira 23.18%, and Ghana Cedi 22.33%, respectively, the data revealed. The local unit is one of the 15 currencies that have lost ground. Pak rupee and the Japanese yen fell almost equally against the dollar this calendar year to date. It is not the rupee that has tumbled and underperformed its regional peers and various global currencies, but other ones are taking a beat.Įxplainer: What will it mean for Pakistan to be removed from the FATF grey list? Pakistan’s currency is one of the worst performers in the world as it has depreciated by 14.57% against the dollar this year, the data compiled by Ismail Iqbal Securities showed. If the IMF deal is finalised, traders expect the rupee to settle within a range of 195-200 per dollar till the end of the outgoing fiscal year 2021-22. The currency expert was of the view that the positive news from the Financial Action Task Force (FATF) will help attract foreign investments which will increase the availability of the greenback. Read more: US agrees to help Pakistan negotiate deal with IMF “Political stability is key for economic development,” he said, adding that former prime minister Imran Khan’s call for another long march may adversely affect the rupee-dollar parity. Meanwhile, Exchange Companies Association of Pakistan (ECAP) Chairperson Malik Bostan identified widening trade deficit, political instability, and declining foreign direct investment as major reasons behind the devaluation of the local currency. It has lost 37.88% (or Rs57.69) to date, compared to the record high of Rs152.27 recorded in May 2021. The rupee has maintained a downward trend for the last 13 months. Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 33.27% (or Rs52.42) compared to the previous fiscal year’s close at Rs157.54. The analyst was of the view that the investors’ confidence is completely shattered which can only be strengthened by positive development on the IMF front.Īgar also mentioned that depleting foreign exchange reserves has triggered panic buying giving speculators a chance to play with the demand and supply of the greenback. “The currency will continue to fall until Pakistan manages to strike a staff-level agreement with the International Monetary Fund (IMF),” AA Commodities Director Adnan Agar said while speaking to Geo.tv. Read more: How a turbo-charged dollar is zooming past several Asian currencies The central bank has seemed helpless in controlling the speculative fall in the rupee as demand for the greenback continues to soar due to quarter-end payments pressure. This is the seventh consecutive working day of free-fall in the rupee, losing approximately Rs6, or over 3%, to date.
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