Due to a multitude of causes, including an increasing flow of US funds into neighbouring Afghanistan, Thursday for both this year and next. The rupee’s average rate this year, according to Fitch, is now 164 to the US dollar, up from 158 earlier. Fitch now forecasts an average rate of 180 for 2022, up from 165 previously.
“We expect the currency to fall further as Pakistan’s terms of trade deteriorate, US monetary policy tightens, and US dollars flow out of Pakistan and into Afghanistan,” it stated.
Since May, the Pakistani rupee has been progressively depreciating. On Thursday, it was trading at 170.50 to the dollar, down more than 10% from its record of 150.95 in May.
According to analysts, the rupee has been harmed by persistent high demand for dollars due to the country’s current account deficit, which is exacerbated by the Afghan crisis.