The Pakistani Rupee sank to a fresh all-time low against the US Dollar today. It depreciated by 84 paisas against the dollar and closed at 175.27.
It hit its prior record low against the USD yesterday when it closed at 174.43.
Market needs a firmer direction.They R nervous & unsure about the next move,which is causing high level of stress.There is no stopping to #PKR one sided move.Players are unsure about the size of next HIKE.Rebalancing of portfolio & mitigating financial losses is tough
— Asad Rizvi (@asadcmka) October 26, 2021
The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said that the uncertain direction of the PKR was exacerbating uncertainty for market players.
Pakistan’s discussions with the International Monetary Fund are still ongoing, and no date for their conclusion has been announced yet.
The National Database and Registration Authority has activated the mandatory biometric verification of dollar buyers.
The central bank had made biometric verification mandatory for the buying of $500 or more from the open market on 7 October in a bid to prevent dollar outflow to Afghanistan after a heavy increase in demand that destabilized the exchange rate in the open market.
Meanwhile, the Pakistan Stock Exchange closed lower for another session today. “As per analysts, the introduction of a new platform, namely the Designated Time Schedule caused the investors to stay on the sidelines,” Capital Stake said in a market wrap report.
The PKR also lost 83 paisas against the Pound Sterling (GBP), 53 paisas against the Australian Dollar (AUD), 19 paisas against the Canadian Dollar (CAD), 22 paisas against the Saudi Riyal (SAR), and 23 paisas against the United Arab Emirates Dirham (AED) today.
However, PKR gained 15 paisas against the Euro.