The Pakistani rupee (PKR) continued to slip against the US Dollar and posted huge losses during intraday trade today.
The Pakistani rupee was all red during the early hours of intraday trade today with the interbank rate losing ~Rs. 4 to reach 288 by 11 AM. By 1:25 PM, it rebounded and moved to the 287 level.
At close, the PKR depreciated by 0.85 percent to close at 287.09 after losing Rs. 2.43 during intraday trade today.
The rupee reported losses today after a tumultuous week that saw Finance Minister Ishaq Dar bow out of meetings with the International Monetary Fund (IMF) and other creditor partners.
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 observed losses of over Rs. 2.43 against the dollar.
Money changers say today’s losses reflect the wider market perception that bears will continue to rule both long-term and short-term trends unless there’s a concrete policy shift, well-formulated fiscal developments for propping up forex reserves and reigniting trade with partner nations. They added the IMF bailout is no longer one of the most crucial options for helping the economy. The state machinery must instill clarity and support for the exchange rate to become stable again, they said.
The PKR was bearish against the other major currencies in the interbank market today. It lost 64 paisas against the Saudi Riyal (SAR), 66 paisas against the UAE Dirham (AED), Rs. 1.76 against the Canadian Dollar (CAD), Rs. 2.31 against the Pound Sterling (GBP), and Rs. 2.37 against the Euro (EUR).
Moreover, it lost Rs. 1.21 against the Australian Dollar (AUD) in today’s interbank currency market.
This is all signs of immaturity and lack of skills of our business community. Just few days back dollar was down because market THINK that IMF going to release funds and today another THINKING. Sensible knows actual dollar value is above 300 mark.