The Pakistani rupee (PKR) declined further against the US Dollar and dropped to a new all-time low during intraday trade today.
The Pakistani rupee was all red during the early hours of intraday trade today with the interbank rate losing ~Rs. 1 to reach 288.625 by 11 AM. By 1:25 PM, it moved back to 287.
At close, the PKR depreciated by 0.19 percent to close at 287.85 after losing 56 paisas during intraday trade today.
The rupee reported losses today and dropped to its worst-ever level after the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Tuesday raised the policy rate by 100 basis points to 21 percent, the highest level in history.
The rupee is down nearly Rs. 57 since January 2023. Since April 2022, it is down over Rs. 106 against the greenback. As per exchange rate movements witnessed today, the PKR has lost observed a drop of over 55 paisas against the dollar.
Money changers say today’s drop reflects the growing talk about the need for debt restructuring as the economy reels from all sorts of pressures. The country faces $73 billion in dollar-denominated loan repayments over the next three years while forex reserves remain scarce.
Meanwhile, one trader said markets may rebound after today’s news that Saudi Arabia has given a green signal to send $2 billion to Pakistan.
Sources in the Finance Ministry told ProPakistani that Finance Minister Ishaq Dar will also approach the leadership of the United Arab Emirates (UAE) to secure further financing before his visit to the United States to attend the annual spring meetings of the IMF and the World Bank Group (WBG).
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 14 paisas against the Saudi Riyal (SAR), 15 paisas against the UAE Dirham (AED), four paisas against the Canadian Dollar (CAD), Rs. 2.16 against the Euro (EUR), and Rs. 2.66 against the Pound Sterling (GBP).
Conversely, it gained 21 paisas against the Australian Dollar (AUD) in today’s interbank currency market.
