The Pakistani rupee (PKR) is poised to end the year as Asia's worst-performing currency, with analysts expecting further depreciation in 2024.
BMI Research forecasts a decline to 350 per USD by the end of next year.
The currency has depreciated by 20.73% or 59.21 rupees against the US Dollar over the year.
Analysts caution that its troubles are far from over, as reported by Bloomberg.
"This currency is seemingly headed for downward adjustments," remarked John Ashbourne, global economist at BMI in London, a Fitch Solutions company.
He identified Pakistan's high inflation and trade deficit as contributing factors to the rupee's depreciation.
Pakistan's substantial debt payments and external funding gap are burdening the rupee.
The country narrowly avoided default this year, while dwindling foreign investments and Asia's fastest inflation are exacerbating its difficulties, as reported by Bloomberg.
Remittances remain stagnant, making the country more dependent on foreign aid for dollar inflows.
The International Monetary Fund (IMF) approved a $700 million payout this month, temporarily helping the nation avert default.
Concerns remain that its challenges may extend well into 2024, with the government needing additional aid for its vulnerable economy.
