Pakistani Rupee traded near a record low at 167.65 against the US dollar in the interbank trade today as the previous all-time low was recorded in April at Rs. 167.90.
Rupee (PKR) lost its ground against the US dollar as it depreciated by Rs. 1.06 in today’s interbank session as the currency closed the day’s trade at Rs. 167.65.
According to Capital Stake, the rupee previously had hit a record low of 168 on March 26th, 2020 on an intraday basis.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities told ProPakistani that the movement of Rupee against the US Dollar doesn’t qualify as a disorderly movement.
The currency will stabilize in the next few months as FX inflows pour in from World Bank, ADB, AIIB, IMF and China. On year on year basis, the depreciation still isn’t much.
Malik Bostan, Chairman Exchange Companies Association of Pakistan, told ProPakistani that the demand for Dollar has received an upsurge due to its increasing requirement for various purposes.
He said that the demand for Dollar has risen in the local market due to the reopening of the business and the subsequent increase of imported commodities and services in the country. Further, the imports of crude oil and petroleum products also picked up with the resumption of the business activities across the country, which also put an enhanced pressure on supplies of Dollar and depreciation of Rupee, he added.
However, Bostan foresaw that the Rupee will remain under pressure mainly because of the consistent demand of Dollar in the country despite the fact the government succeeded in the postponement of loan payment of $2.4 billion to G20 countries and Paris Club.
On the other hand, exports earnings and remittances inflows continued to decrease from various countries.
He said that the government is working on various fronts to contain the outflow of Dollars including a currency swap agreement with China and extension of deferred payment facility from Saudi Arabia in the next few weeks.
Also, loans of nearly $1.5 billion from the Asian Development Bank and World Bank may provide some respite to the country, which may also ease off the pressure on Rupee and its value against Dollar, he concluded.
The Rupee traded in a range of 84 paisa per USD showing an intraday high bid of 167.70 and an intraday Low offer of 167.10. Within the Open Market, PKR was traded at 166.80/167.80 per USD.
USD/PKR is a Playground for Speculators
According to Daily Forex, the resistance levels of the Pakistani Rupee have been broken the past week and the buying of the USD/PKR remains evident. Resistance around the 167.0 juncture appears to be the next touching point if the USD/PKR continues to find buyers and the Pakistani Rupee loses additional value.
The last time the USD/PKR traded near these price levels was in late April, it added.
The USD/PKR is a playground for speculators who are attracted to risks for the potential of large profits.
Current resistance levels appear vulnerable and the trend since late May has shown a gradual erosion in value for the Pakistani Rupee. However, buyers of the USD/PKR must keep in mind the ever-present threat of volatility and the inevitable and sudden declines in value, which also take place.