The Pakistani Rupee (PKR) continued its historic decline against the US Dollar (USD) for the fifth day in a row and depreciated by 18 paisas against the greenback in the interbank market today. It hit an intra-day low of Rs. 178.1 against the dollar during today’s open market session.
The local currency depreciated by 0.10 percent against the USD today and closed at another all-time low of Rs. 177.89 after its loss of 10 paisas when it closed at Rs. 177.71 in the interbank market on Friday, 10 December.
The local currency has lost 12.91 percent on a fiscal-year-to-date basis after recording another historic low today, and it has depreciated by 11.30 percent on a calendar-year-to-date basis. Despite multiple fiscal accomplishments over the past two weeks, the rupee has continued its bad run and has shattered the market’s hopes for a rapid recovery.
The local unit has plummeted from Rs. 123 against the USD in August 2018 to above Rs. 177 against it in December 2021, highlighting a 30.5 percent drop in the last 40 months. This is one of the biggest currency devaluations in the country’s history. The only other bigger devaluation happened in 1971-72 when Dhaka fell and Pakistan’s currency collapsed by 58 percent against the USD from Rs. 4.60 to Rs. 11.10.
Commenting on the local unit’s tumble to another historic low, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked, “While Rupee is certainly undergoing a fundamental realignment, [the] market remains perplexed about the direction in many ways. Nothing is helping, inflow of funds, higher remittances or interest rate differential with further hike priced in & yet PKR is hovering around all-time high”.
While,Rupee is certainly undergoing a fundamental realignment,market remains perplexed about the direction in many ways.Nothing is helping,inflow of funds,higher remittances or interest rate differential with further hike priced in & yet PKR is hovering around all time high
— Asad Rizvi (@asadcmka) December 13, 2021
The PKR maintained its declining trend against most of the other major currencies as well. It posted losses of 78 paisas against the Pound Sterling (GBP), 19 paisas against the Australian Dollar (AUD), and 27 paisas against the Euro (EUR).
It also posted blanket losses of five paisas against the UAE Dirham (AED) and four paisas against the Saudi Riyal (SAR) in today’s interbank currency market.
Conversely, the rupee appreciated against the Canadian Dollar (CAD) and posted gains of three paisas in today’s interbank currency market.
