KARACHI – Another round of Pakistani currency depreciation took place on Monday as the US dollar climbed to all-time high of Rs128.25 in the interbank market amid the recent spate of attacks on politicians ahead of general polls.
The dollar gained by a further Rs6.75 against the rupee to touch its new high in the interbank market, a private news channel reported. The dollar has gained by over Rs20 in the interbank market since December 2017.
As the market opened, the dollar rose to Rs125.50 before it soared to Rs127.50. The greenback also reached its record high of Rs128.20 in the open market today, traders said.
Besides political instability before the elections set to be held on July 25, the rupee devaluation also shows signs of vulnerability in the country’s economy.
Pakistan’s external debt increased by Rs600 billion in a single day after the dollar strengthened in the market.
Meanwhile, amid increasing debt level and depleting foreign exchange reserves, Pakistan’s caretaker government has initiated the process of seeking a bailout from the International Monetary Fund (IMF) to enable the incoming government to move along quicker if it chooses to exercise the option.