The Pakistani Rupee weakened over 5% to hit a record low of Rs 128 against the US dollar in the inter-bank market on Monday, July 16th according to sources familiar with the matter. On Friday, the currency closed at Rs 121.55 in the inter-bank market.
This would be the fourth round of devaluation since December 2017 when the currency was hovering around Rs 105 against the US dollar. Cumulatively, the rupee has lost close to 22% as economic managers move desperately to curtail a widening current account deficit and stop the slide of depleting foreign exchange reserves.
On Saturday, the State Bank of Pakistan has also increased the interest rate by 100 basis points to 7.5%, choosing the monetary policy tool at its disposal to curb aggregate demand and control imports.
Related: Used Cars Will Become Expensive Too
Since December 2017, automakers operating in Pakistan have revised their product prices 3 times already with an increase of more than 150,000 on each local assembled model. With Rupee now hitting the record low, auto consumers of Pakistan are going to be hit by another price revision quite likely in near future.