Rupee hits extreme low record of 125 against US dollar

LAHORE: The rupee is on the mode of continuous depreciation against the US dollar, the drop is at extreme level of 125 against the greenback in the open market on Wednesday. In the meantime, the dollar weakened by Rs0.33 in the interbank market trading at Rs121.40, after climbing to Rs121.73 earlier.

The US dollar hit a record high of Rs121 in interbank trading on Monday. This is the third devaluation by the State Bank of Pakistan (SBP) since December and the hike comes among increasing economic pressure and conjecture of a new assistance programme by the International Monetary Fund (IMF).

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However, the main reason for depreciation according to experts is augmented imports and a extensive current account deficit. The rupee is in trouble, as this state is the outcome of drained reserves, which are now approximately $10 billion.

According to study, Pakistan has gone through three sessions of devaluation and rupee has been termed as the worst performing currency of 2018 by Bloomberg.

All is to be blamed to PML-N government, due to which serious macroeconomic imbalances are to be observed and rapidly increasing debt is a sign of bad impact on the economic conditions.

It is observed that for a long period, value of rupee was kept stable at 105. However, now the variation is continuous and that too within 7 to 8 months only, showing 19 percent devaluation with rupee value of 125.