Rupee Makes History Against US Dollar, Drops to 357 Against British Pound

The Pakistani rupee (PKR) extended losses against the US Dollar and dropped to a new all-time low 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 286 by 11 AM. By 1:25 PM, it moved below 287.

At close, the PKR depreciated by 0.78 percent to close at 287.29 after losing Rs. 2.25 during intraday trade today.

The rupee reported losses today and dropped to its worst-ever level as further delays in agreement with the International Monetary Fund (IMF) continued to weigh heavily on money markets.

The rupee is down nearly Rs. 56 since January 2023. Since April 2022, it is down over Rs. 105 against the greenback. As per exchange rate movements witnessed today, the PKR has lost observed a drop of over Rs. 2 against the dollar.

Money changers say today’s drop reflects market sentiment is declining daily. Pakistan’s debt obligations are piling up the pressure on money channels and there’s a need to manage the external and fiscal accounts with a positive impact.

However, one trader was of the view today’s drop was expected but the apex court’s decision to hold elections next month will likely offer breathing space. Gains are imminent in the remaining days of the week but could be short-lived if the clarity on elections is tarnished in any way.

Pertinently, the Supreme Court of Pakistan earlier today declared Election Commission’s decision to delay the assembly elections in two provinces as “unconstitutional” and ordered the government to hold snap polls in Punjab on May 14.

The PKR was bearish against most of the other major currencies in the interbank market today. It lost 61 paisas against the UAE Dirham (AED), 65 paisas against the Saudi Riyal (SAR), Rs. 2.79 against the Canadian Dollar (CAD), and Rs. 3.01 against the Australian Dollar (AUD).

Moreover, it lost Rs. 4.53 against the Euro (EUR) and Rs. 6.17 against the Pound Sterling (GBP) in today’s interbank currency market.