The Pakistani rupee dropped further against the US Dollar today after opening trade at 306.645 in the interbank market.
At 12 PM, it was bearish, falling as low as 308 after losing ~Rs. 2 against the greenback, against opening-bell bears which saw open market rates recover to 325-327.
Later, the interbank rate climbed to the 307 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day.
Since the caretaker government came to power, the USD has gained Rs. 17.64 against the PKR.
Open market rates (documented) across multiple currency counters stood in the 310-318 range.
At close, the PKR depreciated by 0.48 percent to close at 307.1 after losing Rs. 1.45 against the dollar today.
In tandem with the International Monetary Fund’s requirement of maintaining a 1.25 percent premium on exchange rate movement, the gap between interbank and open market rates is visibly shrinking. From 337 reported yesterday, the rates have gone down by up to Rs. 20 to as low as 320 and have since continued brief spikes to as high as 327 today. A few individuals on market watch have suggested that buyers are few, while sellers are anxious to cash in.
The black market rate has dropped near to the Bank rate and trades in the 324-329 band. Meanwhile, currency dealers said news of Chief of Army Staff (COAS) Asim Munir’s recent meetup with the business community initially improved sentiments and reduced the frequency of pay orders at undocumented channels but ongoing political and economic turmoil coupled with heavy speculation by media and analysts has kept pressure on the PKR.
Pertinently, the rupee is down nearly Rs. 87 since January 2023. Since April 2022, it is down over Rs. 134 against the greenback. As per exchange rate movements witnessed today, the PKR has lost Rs. 1.45 against the dollar.
It is noteworthy that the currency market failed to react positively to news that the Kingdom of Saudi Arabia (KSA) will invest up to $25 billion in Pakistan over the next two to five years. However, if confirmed, the investment would improve sentiments and offer gradual breathing space for the PKR to find a new resistance level. Until then, interbank rupee/$ rates above 310 won’t be a surprise in the coming months.
The PKR was red against most of the other major currencies in the interbank market today. It gained 14 paisas against the Canadian Dollar (CAD), 73 paisas against the British Pound (GBP), and Rs. 1.71 against the Australian Dollar (AUD).
Conversely, it lost eight paisas against the Euro (EUR), 38 paisas against the Saudi Riyal (SAR), and 39 paisas against the UAE Dirham (AED) in today’s interbank currency market.
Source: ProPakistani
