The Pakistani Rupee (PKR) is continuing its harrowing streak against the US Dollar (USD) for the fourth time this week as it deteriorated by Rs. 1.25 against the greenback in the interbank currency market today.
The PKR depreciated by 0.72 percent against the USD and closed at 174.19 today after it posted losses of Rs. 1.3 and closed at 172.93 in the inter-bank market on Wednesday, 10 November.
The rupee is on a mangling run against the dollar over news that the second round of negotiations between Pakistan and the International Monetary Fund’s (IMF) Mission Chief for the revival of the institution’s $6 billion Extended Fund Facility (EFF) ended in a stalemate. Both sides were unable to reach an agreement on a new consensus sketch of the State Bank of Pakistan (Amendment) Bill, 2021, which prompted market sentiments to deflate the Rupee even further.
The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, highlighted the impact of delayed fiscal reforms on the trade gap. He said, “After #PKR pared some of its losses, it is once again under severe pressure due 2 growing $ demand. Widening of the trade gap is hurting”.
INTER BANK
After #PKR pared some of its losses, it is once again under sever pressure due2 growing $ demand. Widening of the trade gap is hurting. The pressure is once again mounting on PKR due to supply constraints. Increase in oil consumption & higher prices is causing unrest.
— Asad Rizvi (@asadcmka) November 11, 2021
He warned, “The pressure is once again mounting on PKR due to supply constraints. [An] increase in oil consumption & higher prices is causing unrest”.
Business conglomerate Arif Habib Limited also commented on the Rupee’s desperate run against the raging dollar by summarizing that the PKR has depreciated 12.58 percent against the USD since its recent peak on 14 May.
PKR continues to fall, losing 2.42% during last six days
Today’s Closing: 174.19, -0.72%
-8.24% CYTD
-12.58% since its recent high (14-May-21)
-9.56% FYTD@StateBank_Pak#SBP #Pakistan #Economy #AHL pic.twitter.com/rQ0ouM1v1I— Arif Habib Limited (@ArifHabibLtd) November 11, 2021
In contrast to its lackluster showing against the US dollar in the open market today, the Rupee did well against other major currencies.
It appreciated Rs. 1.13 against the Pound Sterling (GBP), 37 paisas against the Euro (EUR), 49 paisas against the Australian Dollar (AUD), and 25 paisas against the Canadian Dollar (CAD).
Among other currencies, it posted a loss of 34 paisas against the UAE Dirham (AED) and 33 paisas against the Saudi Riyal (SAR) in today’s interbank currency market.
