28 Day Losing Streak: Rupee Plunges to New All-Time Low Against US Dollar, British Pound

The Pakistani rupee fell to another record-breaking low during intraday trade today with the interbank rate losing Rs. 11 to fall as low as 266 by 1 PM. Open market rates across multiple currency counters registered highs of 271-273 after initial asks for the greenback opened at 260.

At close, PKR depreciated by 2.73 percent and closed at Rs. 262.60 after losing Rs. 7.17. It quoted an intraday low of 266 against the greenback before close.

The local unit was all red against the greenback and opened trade at 252 in the open market. By midday, the greenback moved higher against the rupee to as high as 264. After 3 PM, the local unit continued losses and stayed on the 265 level against the top foreign currency before the interbank close.

Our market sources confirmed earlier that the local currency will continue to be at the mercy of market forces for the foreseeable future, following a broad consensus established in the previous two trading sessions that neither the SBP nor exchange companies will be able to control dollar movements against the PKR.

ProPakistani reported in October last year that pointed towards PKR’s current slump. Our research foresaw the local unit heading for one of its toughest tests and no sentiment or bold claims would be enough to prevent it from crashing again. On the condition of anonymity, a high-profile investment banker told ProPakistani at the time that the rupee could plunge below 250 against the US Dollar if outflows exceeded inflows. The rupee closed at 262.6 today.

Leading up to this week’s chaotic slump, financial experts had earlier this month predicted that the domestic currency would fall to Rs. 250-270 per dollar before the IMF’s $7 billion loan program resumed. The global lender had requested that the government allow market forces, primarily commercial banks, to determine the exchange rate, which was one of four major conditions for restarting the stalled program. At 11 AM today, the greenback was valued at 265.

The PKR was bearish against all of the other major currencies in the interbank market today. It lost Rs. 1.91 against the Saudi Riyal (SAR), Rs. 1.95 against the UAE Dirham (AED), Rs. 4.80 against the Australian Dollar (AUD), Rs. 6.25 against the Canadian Dollar (CAD), and Rs. 6.76 against the Euro (EUR).

Moreover, it lost Rs. 8.34 against the Pound Sterling (GBP) in today’s interbank currency market.

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