The rupee fell 0.6% against the dollar in the interbank market on Tuesday, falling to a historic low as import restrictions surged, boosting demand for the dollar.
The local currency fell $1.87 against the dollar, which was trading at $299 during the day, according to the Association of Pakistan Exchange Companies (ECAP).
The previous low was 298.93, set on May 11.
The rupee closed at 297.13 rupees against the dollar on Friday, closing at 295.78 rupees.
Arif Habib Tahir Abbas, head of research, said he expects the rupee to trade between 295 and 305 rupees to the dollar for the foreseeable future.
“This downward trend is largely due to the reduction of backlogs of goods and services, as well as the easing of import restrictions,” he said.
He added that multinationals were able to repatriate some of their profits, prompting the outflow of rupees.
AA Commodities Director Adnan Agar commented on the development: Geo.tv Some say the rupee’s depreciation is largely due to political reasons, with fears of delays in general elections, which in turn could delay fulfillment of commitments from the International Monetary Fund (IMF) and other global financial institutions.
“With a caretaker government in power and political uncertainty continuing, it raises the question of who will invest and lend money to the country,” he said.
Aggar added that this is the reason for the depreciation of the rupee and that it will remain the same until or until the political situation becomes clearer.