Pakistani Rupee becomes Asia's worst performing currency
ISLAMABAD - Pakistani Rupee becomes Asia's worst performing currency against US dollar and other major currencies.
Pakistani Rupee (PKR) weakened to a record in an apparent devaluation, four days after the South Asian nation secured a bailout from the International Monetary Fund that investors speculate includes tough conditions to reform the economy.
The rupee dropped 3.6pc, the most in more than five months, to 146.52 a dollar at close on Thursday, according to central bank data. The currency has plunged more than 20pc in the past year, making it the worst performer in a basket of 13 currencies in Asia compiled by Bloomberg link .
The rupee level reflects demand and supply conditions in the foreign exchange market, Pakistan’s central bank spokesman Abid Qamar said in a statement on Thursday, adding that it will help in “correcting market imbalances”. The nation had previously said the IMF had not sought to set a level for the currency.
“A market-determined exchange rate’’ will help the economy, the multilateral lender had said in a statement May 12. The nation’s central bank had devalued the currency five times last year and raised interest rates by 475 basis points as it sought to contain the financial blowouts from Pakistan’s twin current-account and budget deficits.