The Pakistani Rupee (PKR) crashed below the 238 level against the US Dollar (USD) during intraday trade today.
By midday, the local unit had lost over Rs. 5.57 against the greenback and was trading at Rs. 238.50 in the open market. This is the highest intraday drop in a week and the second biggest in over three years. Since 11 April, the greenback is up by Rs. 54.55 (intraday) against the PKR.
The local unit previously closed at Rs. 232.93. It has been one of the world’s worst-performing currencies, falling by more than 30 percent since the beginning of the calendar year 2022.
The rupee is taking a beating during intra-day trading today after the Supreme Court of Pakistan on Tuesday nullified Hamza Shahbaz’s ridiculous election as chief minister of the country’s largest province, and instead appointed a former premier Imran Khan-backed leader to oversee the provincial government.
Fitch Ratings and Moody’s Investor Service have tipped Pakistan to successfully receive $1.2 billion from the International Monetary Fund (IMF). The top rating agencies expect the funds to be released in the third quarter (current) of this year, which may potentially reduce pressure on the country’s currency and bonds. Interestingly, the market has yet to respond to this development.
This is an intraday market update.
