Pakistani rupee hits record low against dirham

Pakistani rupee has hit an all time low against UAE dirham, as it continued to slide downward against the Emirati currency and dollar.

Rupee hit 35 against dirham on Thursday, losing its value by two rupees in less than one week due to strengthening dollar and weakening the economy of Pakistan, reported Khaleej Times.

In the last eight months, the Pakistani rupee has fallen by around 20 per cent as the State Bank of Pakistan (SBP) devalued the currency four times by approximately five per cent.

A month ago Pakistani rupee fell to the lowest level reaching 33.11 against the Emirati currency, while losing over three percent – or one rupee in ten days.

Analysts have attributed Pakistani rupee's persistent weakness to balance of payment crisis, falling foreign exchange reserves, political uncertainty ahead of July 25 elections and strong demand for dollar from pilgrims going to Saudi Arabia for pilgrimage.

Pakistani rupee has weakened by Rs 11.89 against the dollar from June 1, 2018 when the caretaker government assumed the office. The rupee slide has resulted in around Rs 1,200 billion increase in the country's debt.