The Pakistani Rupee (PKR) has posted losses against the US Dollar (USD) for the third time this week as the local unit deteriorated by Rs. 1.3 against the greenback in the interbank currency market today.
PKR has depreciated by 0.75 percent from yesterday’s (9 November) rate of Rs. 171.63 against the US Dollar, dropping to Rs. 172.93.
Following its historic losing streak against the dollar, the Rupee had recently shown signs of recovery. However, the Rupee has depreciated against the dollar by more than Rs. 2 in the past two days alone, amid rising uncertainty over the release of IMF loans to the State Bank of Pakistan. The IMF is yet to give a formal go-ahead for the facility, and pressure continues to mount against the Rupee.
Market observers expect the local currency to take more hits as long as preceding accords for financial reforms remain unsettled.
The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, again highlighted the IMF deal as a root cause for the depreciating Rupee earlier today. He said, “After PM’s Saudi visit, it was expected that the loan deposit will be credited in SBP a/c & simultaneously the stalled IMF loan program will resume.”
INTER BANK MARKET…
After PM’s Saudi visit, it was expected that the loan deposit will be credited in SBP a/c & simultaneously the stalled IMF loan program will resume.
Despite tough measures & reforms the delay is causing unrest. Market is nervous & Y’day #PKR lost 112 paisa.
— Asad Rizvi 🇵🇰 (@asadcmka) November 10, 2021
He added, “Despite tough measures & reforms, the delay is causing unrest. [The] market is nervous & Y’day [yesterday] #PKR lost 112 paisa[s].”
Business conglomerate, Arif Habib Limited, commented on the Rupee’s desperate run against the rampant dollar by summarizing that the PKR has depreciated 11.94 percent against the USD since its recent peak on 14 May.
PKR continues to fall, losing 1.71% during last five days
— Arif Habib Limited (@ArifHabibLtd) November 10, 2021
The PKR also continued its disappointing performance against other major currencies for the third consecutive day and posted losses in the interbank currency market today.
It posted losses of Rs. 1.31 against the Canadian Dollar (CAD), Rs. 1.34 against the Pound Sterling (GBP), 12 paisas against the Australian Dollar (AUD), and Rs. 1.18 against the Euro (EUR).
It also posted a loss of 35 paisas against the UAE Dirham (AED) and 34 paisas against the Saudi Riyal (SAR) in today’s interbank currency market.