The Pakistani Rupee (PKR) slid to a new all-time low against the US Dollar (USD) and posted losses in the interbank market today. While redundant, it lost one paisa against the greenback after hitting an intra-day low of Rs. 179.25 against the USD during today’s open market session.

It depreciated by 0.01 percent against the USD and closed at Rs. 178.63 today after losing 47 paisas and closing at 178.61 in the interbank market on Tuesday, 8 March.

While the exchange rate blowback is minimal, the rupee still managed to close at another all-time low against the dollar after the Monetary Policy Committee of the State Bank of Pakistan (SBP) on Tuesday decided to keep the policy rate unchanged at 9.75 percent. In a press release, the Bank said, “current real interest rates on a forward-looking basis are appropriate. However, the Russia-Ukraine conflict has introduced a high degree of uncertainty in the outlook for international commodity prices and global financial conditions”.

The Committee added that the domestic demand and underlying current account continue to moderate toward sustainable levels, while the outlook for inflation has improved following the government’s relief package that was announced last week.

Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that according to the Monetary Policy Statement, the economy is doing well overall because imports have decreased and exports have increased. The Committee believes that the Current Account Deficit is manageable, but the rising oil costs are cause for concern.

He warned, “However, after [a] sharp surge of Eurobond yields, Pakistan’s CDS skyrocketed from 542, which is worrisome”.

The PKR reversed gains against most of the other major currencies and reported losses in the interbank currency market today. It lost 72 paisas against the Pound Sterling (GBP), 73 paisas against the Australian Dollar (AUD), and Rs. 1.61 against the Euro (EUR).

Conversely, it held out against both the Saudi Riyal (SAR) and the UAE Dirham (AED) and gained six paisas against the Canadian Dollar (CAD) in today’s interbank currency market.

Source: Pro Pakistani