The Pakistani rupee (PKR) shed further against the US Dollar and posted losses during intraday trade today.
The Pakistani rupee was initially bullish during the early hours of intraday trade today with the interbank rate gaining over Rs. 5 to reach 276 by 11 AM. By 11:25 AM, it dropped back below 282 and stayed at this level.
At close, the rupee depreciated by 0.20 percent and suspended movement at 282.85 after losing 56 paisas against the greenback.
The rupee reported losses for the third consecutive day today as markets continue to take big hits due to rising political, economic, and creditor pressures.
Pakistan’s 2024 dollar bonds fell for 6th day in a row to lead losses among peers as investors weighed clashes between supporters of former Prime Minister Imran Khan and the coalition.
The rupee is down over Rs. 51 since its record-breaking single-day drop of Rs. 25 in the last week of January and has since then played in mostly red due to immense economic pressure. As per exchange rate movements witnessed today, the PKR has lost over 55 paisas today, noting another decline from yesterday’s 282.29.
Money changers say the staff-level agreement with the International Monetary Fund (IMF) is no longer the only factor proving detrimental to exchange rate fundamentals. Traders are having trouble receiving and repatriating profits with both local and overseas channels reluctant to open/resume letters of credit for authorizing money movements.
Exporters have either shifted to hawala/hundi for better revenue indicators as banking channels and exchange companies are refusing commission downgrades in exchange for more greenbacks. Another trader said smuggling channels are thriving where ‘players’ are trying innovative ways to funnel their precious holdings to avoid paying taxes or commission at currency counters.
The PKR was bearish against all of the other major currencies in the interbank market today. It lost 13 paisas against the Saudi Riyal (SAR), 15 paisas against the UAE Dirham (AED), 68 paisas against the Australian Dollar (AUD), 94 paisas against the Canadian Dollar (CAD), and Rs. 1.78 against the Euro (EUR).
Moreover, it lost 89 paisas against the Pound Sterling (GBP) in today’s interbank currency market.