The Pakistani rupee (PKR) moved lower and posted losses against the dollar during interbank trade on Tuesday, falling as low as 265 against the greenback.
At close, the rupee depreciated by 0.24 percent and suspended movement at 262.51 after losing 63 paisas against the greenback.
The local unit was all red against the dollar and opened trade at 261.50 in the open market. By midday, the greenback went higher against the rupee to around 264. After 1 PM, the local unit was largely bearish against the top foreign currency before the interbank close.
The rupee ended its 5-day win streak against the dollar today after the National Assembly on Monday passed the Finance (Supplementary) Bill, 2023, proposing additional taxes and duties of Rs. 170 billion, paving the way for the staff-level agreement with the International Monetary Fund (IMF).
The rupee is still down over Rs. 27 since its record-breaking single-day drop of Rs. 25 in the last week of January after the currency was finally ‘freed’ against the US dollar in the inter-bank market. As per market trends and fiscal developments observed today, the PKR has lost 62.99 paisas today.
Money changers say a further delay in the staff-level agreement with the IMF could put more pressure on the PKR as investors and exporters alike are following exchange rate movements to determine profit yields amid limited revenue forecasts and associated import restrictions. In the event of a bailout success, the rupee could gain some ground until the end of the ongoing financial year 2022-23.
The IMF’s current loan program will expire on June 30, 2023, after receiving a $2.5 billion loan. If necessary, Pakistan will have to make a new application for the new loan program in the next financial year.
The PKR was bullish against some of the other major currencies in the interbank market today. It gained five paisas against the Pound Sterling (GBP), eight paisas against the Euro (EUR), and 23 paisas against the Australian Dollar (AUD).
Conversely, it lost 22 paisas against the Canadian Dollar (CAD), 16 paisas against the Saudi Riyal (SAR), and 17 paisas against the UAE Dirham (AED) in today’s interbank currency market.