The Pakistani Rupee (PKR) crashed to another record low against the US Dollar (USD) and posted losses in the interbank market today.
It depreciated by 1.34 percent against the USD and closed at Rs. 198.39 after losing Rs. 2.65 in the interbank market today, its worst-ever plunge since dropping Rs. 2.09 against the greenback on 7 April 2022. This is the biggest single-day loss that the local currency has reported since 2020.
The local unit hit an intra-day high of Rs. 193.25 against the USD during today’s open market session. The greenback has gained Rs. 11.71 against the rupee since last week, and Rs. 15.46 since 11 April 2022.
The rupee slid to another low against the dollar for a record ninth consecutive day as the Government of Pakistan finally resumed talks with the International Monetary Fund (IMF) in Qatar today. Investors are anxious over market speculation which indicates that the lender may refuse to revive its loan program due to the coalition government’s unwillingness to take tough fiscal actions.
Analysts forecast the rupee to eventually fall below 200 in the interbank market if the government does not take urgent steps to restore economic and political stability to the country.
On the political front, markets seemed bearish during open trade after the Supreme Court of Pakistan on Tuesday announced that the votes of defecting lawmakers will not be counted for the election of prime minister and chief minister, a vote of confidence or no-confidence, a Constitution amendment bill, and a money bill.
Globally, oil prices continued to stay above the $110 level. Brent crude soared as high as $112.8, while the US West Texas Intermediate (WTI) crude gained leveled above $113.
The PKR slid against all the other major currencies in the interbank market today. It lost Rs. 3.77 against the Euro (EUR), Rs. 1.85 against the Canadian Dollar (CAD), Rs. 1.75 against the Australian Dollar (AUD), and Rs. 2.64 against the Pound Sterling (GBP).
Moreover, it lost 70 paisas against the Saudi Riyal (SAR) and 72 paisas against the UAE Dirham (AED) in today’s interbank currency market.
Kya baat karta hai yar gardezi! Teri to pancho ghee main hon gi ab.