Pakistani rupee continues its free fall

INTERNATIONAL DESK: The Pakistani rupee continued its free fall, selling at above Rs 189 against the US dollar on Thursday.

The recent round of depreciation emerged as the political crisis deepened in the country. Meanwhile, the State Bank of Pakistan (SBP) remained silent over the current exchange rate situation, reported Geo News.

The Pakistani rupee lost more than 10 per cent since March 4 in the wake of the deepening political crisis in the country.

The local currency was trading at Rs 189 in the interbank market, down Rs 2.87 from Wednesday’s close of Rs 186.13, reported Geo News.

The rupee has continued a non-stop downward streak for the 17th successive working day, except on March 24 when it closed flat compared to the previous day’s closing.

The investors are worried about the political situation and economy, adding pressure on the central bank to rescue the falling currency.

In times of currency depreciation, traders’ guidance triggers panic buying in the market. They convince importers to buy more in a short period to make their payments so this unnecessary demand creates a shortage of dollars in the market.

At the same time, they advise exporters to not sell dollars and hoard them in anticipation of further depreciation, which weakens the greenback supplies, reported Geo News. (ANI)