The Pakistani rupee (PKR) reversed last week’s gains against the US Dollar and crashed near its all-time low of 285.09 during intraday trade today.
The Pakistani rupee was largely bearish during the early hours of intraday trade today with the interbank rate losing Rs. 5 to reach 286 by 11 AM. By 11:25 AM, it went as low as 287 before rebounding later during intraday trade.
At close, the rupee depreciated by 0.82 percent and suspended movement at 284.03 after losing Rs. 2.31 against the greenback.
The rupee reported losses today after the International Monetary Fund (IMF) dismissed the speculation that it wants Pakistan to abandon its long-range nuclear weapons program. The lender said this after last week when Finance Minister Ishaq Dar brought the topic of Pakistan’s prized nuclear missiles into the public sphere amid his team’s recent struggles to ink a much-awaited staff-level agreement (SLA) for a billion-dollar IMF bailout.
The rupee is down over Rs. 52 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 Rs. 2.31 today, noting another discouraging loss after two days of gains.
Money changers say the government’s latest ‘nuclear narrative’ after exhausting efforts on the talks with the IMF backfired and brought more heat on the exchange rate.
It bears mentioning that Pakistan requires $6 billion in new loans to bridge the financing gap and convince the IMF but Saudi Arabia, the United Arab Emirates, and Qatar have yet to provide these loans despite Pakistan’s desperate pleas. If everything still proceeds on schedule, the talks may progress, or be abandoned altogether if uncertainty and communication delays persist.
The PKR was bearish against the other major currencies in the interbank market today. It lost 61 paisas against the Saudi Riyal (SAR) and 63 paisas against the UAE Dirham (AED).
Moreover, it lost Rs. 1.03 against the Australian Dollar (AUD), Rs. 1.34 against the Canadian Dollar (CAD), Rs. 2.58 against the Euro (EUR), and Rs. 4.13 against the Pound Sterling (GBP) in today’s interbank currency market.