Home Economy Rupee sinks to record low of 169.60 to dollar

Rupee sinks to record low of 169.60 to dollar

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KARACHI: Rupee slumped to an all-time low on Monday mostly driven down by swelling import payments, skyrocketing commodity prices, and a ballooning current account deficit.

The rupee ended at 169.60 to the dollar—its weakest ever closing—down from the previous close of 169.08. It fell 52 paisas or 0.31 percent. In the open market, the rupee was quoted at 171.60 against the dollar at close, compared with 171 on Friday.

Traders said a further downside in the currency was quite expected given the substantial rise in dollar demand from importers despite the central bank’s intervention in the form of measures taken by it to prevent the local unit from declining more.

“Payments were high and there are more due in the coming days so there was some position building as well. In addition, the sentiment on the rupee is also weak,” said a foreign exchange trader.

Samiullah Tariq, the head of research at Pak-Kuwait Investment Company said the demand…

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