Pakistan rupee drops to record low as import restrictions ease – Reuters

A currency trader counts Pakistani Rupee notes as he prepares an exchange of U.S dollars in Islamabad, Pakistan December 11, 2017. REUTERS/Caren Firouz/File Photo Acquire Licensing Rights
KARACHI, Pakistan, Aug 22 (Reuters) – Pakistan's rupee closed at a record low of 299 rupees against the dollar in the interbank market on Tuesday following an easing in import restrictions that has lifted demand for the dollar, central bank data showed.
Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves. The removal of those restrictions beginning in June was a condition of a $3 billion International Monetary Fund loan programme to help the crisis-ridden economy.
Traders said the rupee fell 0.6% to an intraday low of 299 against the dollar. On May 11, it logged a record closing low of 298.93. That was two days after former prime minister Imran Khan was arrested on allegations of graft, plunging the country further into political turmoil.
Pakistan is currently being governed by a caretaker government that is tasked with steering the country through to a national election that is in theory due to take place by November, while grappling with acute political tension as well as historically high inflation and interest rates.
Tahir Abbas, head of research at Arif Habib, a Karachi-based brokerage company, said he expected the rupee to trade between 295 and 305 to the dollar for the time being.
"The declining trend is mainly attributable to the ease off in the import restrictions coupled with clearance of backlog for goods and services," he said.
He added that multinational corporations were able to repatriate some profits, furthering rupee outflows.
Reporting by Ariba Shahid in Karachi; Editing by Edwina Gibbs and Conor Humphries
Our Standards: The Thomson Reuters Trust Principles.
Thomson Reuters
Ariba Shahid is a journalist based in Karachi, Pakistan. She primarily covers economic and financial news from Pakistan, along with Karachi-centric stories. Ariba has previously worked at DealStreetAsia and Profit Magazine.
Some 13,000 unionised rail workers launched a four-day strike on Thursday, their first such action in four years, which could cut passenger and cargo train operations by up to 60% amid soaring demand ahead of major holidays.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved


Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top