The Pakistani Rupee (PKR) dropped to a new all-time low against the US Dollar (USD) and depreciated by four paisas against the greenback in the interbank market today. It hit an intra-day low of Rs. 178.62 against the USD during today’s open market session.
The PKR depreciated by 0.02 percent against the USD and closed at Rs. 178.17 today after taking marginal hits and closing at 178.13 in the interbank market on Friday, 24 December.
The Pakistani Rupee continues to depreciate against the US Dollar despite the Federal Investigation Agency’s (FIA) stern action against illegal currency businesses, with the Rupee sliding to a record low of Rs. 181.3 against the greenback in the open market on Friday.
The chairman of the Exchange Companies Association of Pakistan, Zafar Paracha, attributed the government’s questionable seriousness to the rupee’s performance. He told a national newspaper that economic data indicated that the dollar was overvalued and the exchange rate should be between Rs. 160 and Rs. 165.
He explained that the State Bank of Pakistan (SBP) has taken effective steps, but the exchange rate hasn’t exactly mirrored the same level of efficacy. The government, on the other hand, has yet to take this seriously, and it appears that the establishment and the Bank aren’t on the same page, he remarked.
It is pertinent to mention that the sixth review meeting with the International Monetary Fund (IMF) is only a few weeks away, and numerous analysts suggest that an accord with the global lender may not do much for the local unit as seen after loan receipts from the Asian Development Bank and World Bank through separate avenues.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, discussed how, unlike the current times, things were easier due to the suspension of talks with the IMF back in June.
INTER BANK
Unlike now,Due2 talks suspension with IMF in June FY22, conditions were easy.Presently,SBP is making adjustments.
We have already seen 7 & 63 days 2-RR injections & ONE MORE could come B4 T/BILLS AUCTION.
PKR /$,SWAP/FWD too is recently active. #PKR too is adjusting.— Asad Rizvi (@asadcmka) December 26, 2021
He added, “Presently, SBP is making adjustments. We’ve already seen 7 and 63 days [for] RR injections, & one more could come before T-Bills Auction.”
The PKR resumed its declining trend against most of the other major currencies as well. It posted losses of 24 paisas against the Pound Sterling (GBP), 13 paisas against the Canadian Dollar, and one paisa against the UAE Dirham (AED).
Conversely, the rupee held out against the Saudi Riyal (SAR) and gained seven paisas against the Euro (EUR) despite the intraday threat of value shredding. It also held out the Australian Dollar (AUD) and gained 16 paisas in today’s interbank currency market.
Malikasif