The Pakistani Rupee (PKR) fell to another new all-time low against the US Dollar (USD) and depreciated by six paisas against the greenback in the interbank market today. It hit an intra-day low of Rs. 178.20 against the USD during today’s open market session.
The PKR depreciated by 0.03 percent against the USD and closed at Rs. 178.04 today after it managed to hold its own and closed at 177.98 in the inter-bank market on Thursday, 16 December.
The local currency has lost 13.01 percent on a fiscal-year-to-date basis after recording another historic low today besides depreciating by 11.39 percent on a calendar-year-to-date basis.
According to research published by Capital Stake, the PKR has lost 0.19 percent against the US Dollar on a week-on-week basis, and has depreciated by 1.32 percent on a month-to-date basis.
It has plunged to another historic low on the back of various fiscal measures that have failed to consolidate the exchange ledger so far. Moreover, the foreign exchange reserves held by the country dipped by $123 million to stand at $25.02 billion during the week that ended on 10 December 2021, according to the weekly data released by the State Bank of Pakistan (SBP).
Pakistan’s liquid foreign reserves had an outflow of $90 million on account of the debt servicing in the week ending on 10 December. During the week, commercial banks’ foreign exchange reserves stood at $6.4 billion, posting a decline of $33 million.
The market expects further fiscal tightening in the upcoming weeks as the activation date for the IMF loan tranche draws nearer.
In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted, “[As] per SBP data NET FX RESERVES fell by $89.9mn to $18,568mn.The drop confirms payment exceeds receivables. This is not [a] very encouraging sign as demand for $ is pushing PKR close to all-time lows & IMF funding will not be available before 3-weeks. While, $ demand persists”.
INTER BANK
Per SBP data NET FX RESERVES fell by $89.9mn to $18,568mn.The drop confirms payment exceeds receivables. This is not very encouraging sign as demand for $ is pushing #PKR close to all time lows & IMF funding will not be available B4 3-weeks. While $ demand persists. pic.twitter.com/6VObcpE3be
— Asad Rizvi (@asadcmka) December 17, 2021
The PKR resumed its declining trend against most of the other major currencies as well. It posted losses of 91 paisas against the Pound Sterling (GBP), 23 paisas against the Canadian Dollar (CAD), and 32 paisas against the Euro (EUR).
It also posted a blanket loss of one paisa against the UAE Dirham (AED) and held out against the Saudi Riyal (SAR) in today’s interbank currency market.
Contrarily, the rupee appreciated against the Australian Dollar (AUD) and posted gains of 21 paisas in today’s interbank currency market.
