Fears of Pakistan’s faltering economy further exacerbate

KARACHI, July 27 (SABAH): The Pakistani rupee Wednesday plunged to a new low against the US dollar, which continued to strengthen for the ninth straight session during intraday trade in the interbank market.

The local unit is trading at Rs237 in the interbank market, up from Rs232.93 a day earlier, as it shed Rs4.07.

The rupee has been one of the world’s worst-performing currencies, slumping more than 30% since the start of the year (2022).

But its depreciation is not limited to local dynamics as the greenback is now at a 20-year high against other world currencies, thanks in part to expectations that the Federal Reserve will increase its interest rates faster than most.