The Pakistani rupee experienced a further dip, extending its losses by Rs1.09 against the US dollar in the interbank market on Thursday.
The State Bank of Pakistan (SBP) reported that the dollar closed at Rs305.54, compared to the previous day’s closing rate of Rs304.45.
The rupee’s decline, marking a 0.4% loss, has been attributed to Pakistan’s easing of import restrictions to meet the terms of a $3 billion bailout package from the International Monetary Fund (IMF) and the prevailing political instability.
This consistent devaluation of the rupee has not only triggered inflation but has also compelled the central bank to raise interest rates as a measure to mitigate the consequences of the uncontrolled depreciation of the domestic currency.
Consequently, the stock market, which suffered losses earlier in the day, saw a drop of over 1,700 points.
Following a flat period of trading for the initial ten minutes after opening, the market began a gradual descent.
By 12:00pm, the KSE-100 index had lost 659 points, reaching a value of 45,584.62. Subsequently, the market underwent a steep plunge of 1,784.93 points around 2:50pm, hitting a low of 44,459.62.
At the close of trading, the market managed to correct itself slightly to 45,002.41, ultimately recording a decline of 1,242.14 points, equivalent to a 2.69% drop from the previous day’s closing value of 46,244.55.
