ISLAMABAD – Pakistani Rupee becomes Asia’s worst performing currencyagainst US dollar and other major currencies.
Pakistani Rupee (PKR) weakened to a record in an apparent devaluation, fourdays after the South Asian nation secured a bailout from the InternationalMonetary Fund that investors speculate includes tough conditions to reformthe economy.
The rupee dropped 3.6pc, the most in more than five months, to 146.52 adollar at close on Thursday, according to central bank data. The currencyhas plunged more than 20pc in the past year, making it the worst performerin a basket of 13 currencies in Asia compiled by Bloomberglink.
The rupee level reflects demand and supply conditions in the foreignexchange market, Pakistan’s central bank spokesman Abid Qamar said in astatement on Thursday, adding that it will help in “correcting marketimbalances”. The nation had previously said the IMF had not sought to set alevel for the currency.
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“A market-determined exchange rate’’ will help the economy, themultilateral lender had said in a statement May 12. The nation’s centralbank had devalued the currency five times last year and raised interestrates by 475 basis points as it sought to contain the financial blowoutsfrom Pakistan’s twin current-account and budget deficits.
