The Pakistani rupee (PKR) reversed gains against the US Dollar and posted losses during intraday trade today.
The Pakistani rupee was largely bearish during the early hours of intraday trade today with the interbank rate losing Rs. 1 to reach 284 by 11 AM. By 13:25 PM, it recovered back to the 283 level and stayed on it.
At close, the PKR depreciated by 0.13 percent to close at 283.92 after losing 37 paisas during intraday trade today.
The rupee reported losses today after lawmakers on Tuesday tabled the Supreme Court (Practice and Procedure) Bill, 2023 in a bid to limit the discretionary powers to take suo motu notice by the Chief Justice of Pakistan.
The rupee is down nearly 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 declined today, noting another fall and closing near last week’s low of 284.03.
Money changers say today’s gains reflect the market’s reaction to state institutions locking horns. In terms of macros impacting exchange rate consolidation, they said exporters are making rare entries at cash counters for profit-taking but returns remain bleak since there isn’t much business happening since the floods hit.
A disgruntled dollar trader said the IMF winds are fading away, and we might not see a bailout before June. Others said it is only a matter of weeks before the staff-level agreement is finally agreed to, but this kind of uncertainty is hurting market sentiments.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost nine paisas against the UAE Dirham (AED), 11 paisas against the Saudi Riyal (SAR), 44 paisas against the Euro (EUR), 56 paisas against the Pound Sterling (GBP), and 71 paisas against the Canadian Dollar (CAD).
Conversely, it gained five paisas against the Australian Dollar (AUD) in today’s interbank currency market.