KARACHI: The Pakistani rupee continued its downward spiral unabated for the 14th consecutive session on Wednesday and hit an all-time low of Rs240 against the US dollar in the interbank market amid floods and a shortage of greenback in the country.
The rupee has been one of the worst performing currencies in the emerging markets and has fallen by nearly 9% so far this month owing to wide-ranging factors.
In the interbank market during intraday trade, the rupee plunged to 240 after losing 1.09, according to Investing.com, down in value from the previous session’s close of 238.91.
Rupee worst-performing currency
The Pakistani currency has become the worst-performing currency in emerging markets in September as the cataclysmic floods halted economic activities and caused total accumulated losses of over $30 in the country.
The local unit has weakened by approximately 27%, or over Rs30, against the US dollar since the start of the current fiscal year 2022-23.
There are fears it may further lose its value, however, Pakistan is not the only country that is facing the depreciation of its currency. There are a host of other countries that are facing a similar currency weakness, which is making their economies unstable and investors pensive.
Speaking to Geo.tv a day earlier, former advisor to Finance Ministry Dr Khaqan Najeeb said the dollar remained firm at a two-decade high versus major peers, as investors are looking to the Federal Reserve to continue its aggressive interest rate hiking.
“The US dollar is in a strong momentum for time being,” he maintained.
The analyst elaborated that the long period of steady growth and low inflation the US economy had before COVID-19 is being replaced by a “higher inflation globally”.