KARACHI:
The Pakistani rupee further depreciated on Thursday as the US dollar rose above Rs226.81 in the inter-bank market, setting a new record.
As economic challenges for the country increased, the dollar’s meteoric rise continued as commercial banks reportedly resumed lines of credit for oil imports at high costs.
The fresh high of the USD comes in response to the rising demand for the foreign currency, despite a lack of supply in the interbank market.
Explaining the factors behind the significant depreciation of the rupee, the State Bank of Pakistan (SBP) has stated that the current account situation, under the dynamic market-based exchange rate system, corresponds to news of internal uncertainty. This combination has led to fluctuations in the value of the rupee on a daily basis.