Pak rupee has hit an all-time low against the US dollar. The rupee has reached PKR 135.2 against the dollar in the first hour of open market trade on Friday. Since December 2017 the Pak rupee has depreciated by over 25% against the US dollar. Also in the last four months, the rupee has continued to be extremely volatile. At least three times since mid of July the rupee sharply rose or fell against the dollar. On October 9th the rupee jumped by Rs10. It was the highest-ever single day jump of rupee as it rose to Rs 135 in the open market.
Must read: Pak Rupee drops against the dollar
The reason rupee has depreciated further against the dollar is because of the government’s delay in taking the loan from the International Monetary Fund (IMF). Pakistan is in need of loans to overcome its depleting reserves. Initially, the dollar did come down slightly after Saudi Arabia agreed to give $6 billion aid package to Pakistan. But now as now deal has been made with IMF and things are being delayed, the value of rupee has gone down.
Unfortunately, it will affect other industries as well especially the auto market, prices of commodities and it may give rise to inflation. Pakistan is in need of national and international help/aid to get out of the present economic crisis.