Pakistani rupee slumped to an all-time low against the US dollar and UAE dirham on Thursday, dragged down by outflow of investment from T-bills and impact of coronavirus on the economy.
Data from xe.com showed that the rupee plummeted to an all-time low of 45.6 against the UAE dirham or 167.35 versus the US dollar.The rupee came under pressure after State Bank of Pakistan (SBP) eased foreign exchange regulations to facilitate import of medical equipment to fight coronavirus.
SBP has allowed all federal and provincial government departments, hospitals in public and private sectors, charitable organisations, manufacturers and commercial importers to make Import Advance Payment and Import on Open Account, without any limit, for the import of medical equipment, medicines and other ancillary items for the treatment of Covid-19.
The rupee has been steady over the past couple of quarters after Islamabad signed a $6 billion agreement with International Monetary Fund to stabilise economy.
The Fund had asked Islamabad to allow the free float of currency and let market dynamics settle the forex rates. Since then, the SBP didn't intervene in the market to prop the currency.
The rupee's previous all-time low was hit on July 1, 2019, when it had crashed to 44.5 versus dirham.