The Pakistani Rupee (PKR) resumed its deterioration trend against the US Dollar (USD) today (Thursday, 10 June), and almost pierced the Rs. 156 exchange rate boundary.
It closed at Rs. 155.91 against the USD at the end of the trading day today, down by 22 paisas as compared to Rs. 155.69 to the USD yesterday (Wednesday, 9 June).
On the first two days of the current week, the PKR had posted significant losses of 70 paisas and 47 paisas, respectively. Yesterday it had posted an improvement of nine paisas.
Regarding the recent downfall of the PKR, the Managing Director of Khadim Ali Shah Bukhari Securities, A. A. H. Soomro, told ProPakistani that the “pressure on the currency is stemming as the economy opens up, imports grow faster than the exports & REER at 103”.
He said that with the high prices of oil, the TERF imports, the economic resumption, and the food one-offs, the trade deficit is nearing the Red Zone.
“However, remittances and RDAs are solid. Hence, maintaining below Rs. 160 in the foreseeable future is likely amid political pressures,” he explained.
According to the World Bank’s latest flagship report, yesterday’s improvement may also have been steered by the upward revision of the growth projections.
The PKR posted mixed results against most other major currencies in the interbank currency market today.
It gained five paisas against the Euro and posted notable gains of Rs. 1.16 against the Pound Sterling (GBP). It also appreciated by six paisas against the Canadian Dollar (CAD), but posted a loss of four paisas against the Australian Dollar (AUD).
The PKR also resumed its losing streak against the UAE Dirham (AED) and the Saudi Riyal (SAR), and posted losses of five paisas and six paisas respectively against them.