PKR hits record low against US dollar amid ongoing political instability

Uncertainty over IMF bailout program contributes to Pakistani rupee's depreciation

ISLAMABAD: The ongoing political instability in Pakistan has had a negative impact on market sentiment, as the Pakistani rupee reached a record low of 290 against the US dollar.

The currency depreciated nearly 1.8% in the inter-bank market during Wednesday’s trading. This is due to uncertainty surrounding the resumption of the International Monetary Fund (IMF) bailout program, which has been exacerbated by the political tension in the country.

According to the Finance Ministry it has made arrangements to repay or roll over this fiscal year’s $3.7 billion debt, so there should be no cause for concern. The US dollar has weakened broadly due to the debt ceiling crisis, but currency moves remain marginal ahead of US inflation data. Oil prices also dipped on Wednesday due to an unexpected rise in US oil inventories and concerns about demand.

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