The Pakistani Rupee (PKR) has posted losses against the US Dollar (USD) for the second time since last week as the local unit deteriorated by 50 paisas against the greenback in the interbank currency market today.
The local currency maintained its shape against the USD on Friday, a trend that was observed in April 2020, and also managed to stay unhinged against the USD and closed at 170.01 in the interbank market.
As is the case with fiat currency trends, bull runs sometimes require retreating back and forth in order to gain more strength. However, this is the third time that the PKR has retreated within just seven days. Moreover, the effects of the Saudi relief package seem to have gone cold despite the State Bank of Pakistan having recently received a straight-up $3 billion deposit in support payments.
Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, commented on the matter earlier in the day, and said, “Though PKR gained nearly 3%, the tumultuous week ended with PM relief package & with surprise decisions”.
Though #PKR gained nearly 3%,the tumultuous week ended with PM relief package & with surprise decisions. In a hurry,Petroleum price was hiked 11 days b4 the schedule date, followed by hike in electricity, sugar, ghee & edible oil prices. Yet is waiting for direction.
— Asad Rizvi 🇵🇰 (@asadcmka) November 8, 2021
He added, “In a hurry, Petroleum price was hiked 11 days before the scheduled date, followed by a hike in electricity, sugar, ghee & edible oil prices. Yet is waiting for direction”.
The PKR also reversed its gains against other major currencies from last week and posted losses in the interbank currency market today.
It posted losses of 45 paisas against the Canadian Dollar (CAD), 37 paisas against the Pound Sterling (GBP), 52 paisas against the Australian Dollar (AUD), and 78 paisas against the Euro (EUR).
It also posted a blanket loss of 13 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s interbank currency market.