There was no respite from the declining rupee trend on Monday as the currency dropped to a new all-time low of Rs181.35 against the US dollar in the inter-bank market during intra-day trade despite a decrease in the current account deficit.
The movement of the local currency against the greenback is being driven by sentiments, besides the demand and supply.
According to data released by the State Bank of Pakistan (SBP), rupee closed at Rs180.57 on Friday.
Moreover, the looming political crisis and worries about the next tranche of the International Monetary Fund (IMF) loan kept the currency under pressure.
There has been no progress on Pakistan and the IMF’s seventh review talks for the release of the next loan tranche following the breaches committed by the government on different fronts.
The IMF showed concerns about the PM’s relief package.
Contrary to the expectations of the market, the declining current account deficit failed to entice investors and the currency continued to drop to new lows.
