Pak rupee plunges

ISLAMABAD (web desk) – Domestic currency for the second time in a span of almost four months received a second jolt where rupee depreciated by another 4 percent on economic concerns and higher external debt payments.

Pakistan rupee closed around 115 to a greenback from Monday closing of 110.55, down by four percent or Rs 4.45.

The main factor behind this slide has been the economic worries especially the debt profile of the country where external debt risen to 89 billion dollars while widening current account deficit which in seven months of current fiscal year already hit 4.2 percent of the deficit.

Rupee since December has weakened by almost 9 percent which would result in rise in payment on external debt and would be in excess of Rs 850 billion while price of the commodities which being imported would increase.

On a conservative estimates, price of petroleum products would likely to show an increase Rs 4 to Rs 5 per liter.