Rupee falls, hits record low at 166.98

The rupee hit a new low against the dollar as it dropped to Rs166.98 on Thursday, depreciating 11 paisas or 0.07 per cent. The domestic unit weakened against the greenback.

The local currency extended its recent sequence of posting losses versus the greenback in the interbank market for the fourth consecutive day.

The rupee has been facing pressure since May because of import payments being significantly higher than the export earnings.

Even though the exchange rate was expected to appreciate after the increase of the country’s foreign currency reserves, it failed to do so.

State Bank Pakistan has adopted a new policy of not using its borrowing to support the rupee.

Moreover, Sustainable Development Policy Institute Head of Policy Solutions Sajid Amin commented n the recent depression that it is nothing to worry about.