Fitch Ratings revised down its forecasts for the Pakistani rupee on Thursday for both this year and next due to a variety of factors including an increased flow of US dollars into Afghanistan, projecting an average rate of 180 versus a previous forecast of 165 in 2022.
The forecast of the New York-based agency — one of the three major global ratings agencies — for the rupee’s average rate this year is now Rs164 to the US dollar compared with Rs158 previously.
A day ago stocks fell nearly 3 per cent while the rupee dropped to a record low at Rs170.27, as investors feared a US Senate bill that is seeking to impose sanctions on the Afghan Taliban could be extended to Pakistan.
The rupee, which has been termed the worst-performing currency in Asia, seems to have opened the field for the bullish US dollar to move forward unchecked and erode the remaining value of the local currency.
The currency has been losing purchasing power fast in the domestic…