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 initially losing ~Rs. 1 to reach 284.75 by 11 AM. By 1:25 PM, it recovered back to the 283 level and stayed on it.
At close, the PKR depreciated by 0.05 percent to close at 283.79 after losing 13 paisas during intraday trade today.
The rupee reported losses today despite Finance Minister Ishaq Dar’s confirmation that China last week rolled over a $2 billion loan to Pakistan for another year.
The rupee is down nearly Rs. 52 since January 2023. As per exchange rate movements witnessed today, the PKR has lost some ground today, noting a drop of 13 paisas.
As of March 24th, the foreign currency reserves held by the SBP were recorded at $4.244 billion, down $354 million compared to 4.599 billion on March 17.
Money changers say today’s drop reflects the confidence of market players who have lost faith in the current yield-hunting framework of the South Asian economy as no amount of macro improvements are giving much hope for the near-term business outlook.
Others said political instability and the use of state institutions to derail elections haven’t been well received by investors.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost three paisas against the Saudi Riyal (SAR), three paisas against the UAE Dirham (AED), 19 paisas against the Canadian Dollar (CAD), Rs. 1.45 against the Pound Sterling (GBP), and Rs. 1.59 against the Euro (EUR).
Conversely, it gained three paisas against the Australian Dollar (AUD) in today’s interbank currency market.