In comparison to the US dollar (USD) and UAE dirham (AED), the Pakistani rupee (PKR) suffered a severe decline and dropped to an all-time low. The current political unrest in the nation is blamed for this drop.
The State Bank of Pakistan (SBP), in reaction to this worrying economic development, also increased interest rates by 100 basis points. Data from xe.com show that on Tuesday night, the rupee’s value fell to record lows of 288 against the USD and 78.5 against the AED.
The relevant authorities must act quickly to address this worrying trend in the value of the PKR relative to the world’s main currencies.
The PKR managed to stabilise at 287.29 against the USD after a sharp decline of more than 2% in a single day, despite its early dip.
Pakistan is presently dealing with significant difficulties as a result of the complicated political landscape and widening divisions between the ruling party and the opposition. The politics and economy of the nation could be further impacted by this rapidly deteriorating scenario.
As of mid-March, the SBP estimates that the nation’s foreign exchange assets were around $4.31 billion. According to market analysts, the PKR could drop even further and hit 300 against the USD if the current economic instability persists. The PKR was already trading for 291, or 79.29 AED against, on the open market.