Pakistan rupee drops to record, bonds fall as Fitch cuts outlook

The rupee has tumbled to a succession of all-time lows in recent days as escalating political uncertainty has added to concern over the country's bailout deal with the IMF

Pakistan’s rupee slumped to a fresh record low and the nation’s stocks and dollar-denominated bonds both fell after Fitch Ratings cut the country’s credit-rating outlook.
 

The rupee slid 3.2 per cent to close at 221.99 per dollar, while the benchmark stock index slid 2.4 per cent, and dollar bond due in April 2024 were indicated 14.2 cents lower, the biggest drop ever, at 53.15 per dollar. 

Fitch downgraded its outlook to negative Tuesday, citing concern over a “significant deterioration in Pakistan’s external liquidity position and financing conditions” and risks to the implementation of its International Monetary Fund program. 

“Political uncertainty is back