Pakistani rupee falls a record low of ₹ 255 against US dollar

Soon after Pakistan loosened its grip on the exchange rates on Wednesday in order to secure a much-needed loan from the International Monetary Fund (IMF), the nation saw its currency, the Pakistani dollar, fall a record low of ₹ 255 against one US dollar, according to media reports.

The Pakistani Government, in order to obtain a loan of $6.5 billion in funding from the IMF, withdrew its limit on the dollar-rupee rate on Wednesday. Consequently, according to local media reports, the Pakistani rupee fell a record ₹ 24 coming in at ₹ 255 against the US dollar at around 1 pm.

Last year, Pakistan had been granted a bailout from the IMF. The proposed funding, however, has since not been granted. It was on the recommendation of the IMF that the nation decided to remove the limit on the rupee-dollar exchange, thereby letting the home currency fall in the open market.

This week, The Central Bank of Pakistan also raised interest rates to a 24-year high.

The current economic situation in Pakistan has taken a plunge, with the inflation rates so high that parts of the nation saw a bag of flour selling for as much as ₹ 3,000, according to media reports. The high prices could possibly be attributed to the low levels of forex reserves in Pakistan at the moment. Parts of the nation also saw blackouts in the recent few days.