The Pakistani rupee (PKR) plunged to a fresh all-time low against the US Dollar and posted big losses during intraday trade today.
The Pakistani rupee was bearish throughout intraday trade today with the interbank rate losing ~Rs. 2 to reach 289.2 by 11 AM. By 1:25 PM, it moderated movement and stayed at the 288-289 level.
At close, the PKR depreciated by 0.85 percent to close at 288.43 after losing Rs. 1.34 during intraday trade today.
The rupee reported losses today after Finance Minister Ishaq Dar defied the Supreme Court of Pakistan by saying that provincial elections are not in Pakistan’s national interest at the moment, given the country’s economic turmoil and security situation.
The rupee is down nearly Rs. 58 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 observed losses of over Rs. 1.3 against the dollar.
Money changers say today’s losses reflect yesterday’s political episode that exacerbated the current economic turmoil. The exchange rate has been on the receiving end of massive sentiment play and fundamentals no longer help weigh out fiscal pressures on the other end. They added that Pakistan is also at risk of becoming bankrupt. An IMF bailout has been stalled since November despite the fact that its central bank’s foreign exchange reserves would only cover four weeks of imports and inflation exceeds 35 percent.
The PKR was bearish against the other major currencies in the interbank market today. It lost 35 paisas against the Saudi Riyal (SAR), 36 paisas against the UAE Dirham (AED), Rs. 1.12 against the Canadian Dollar (CAD), Rs. 1.14 against the Euro (EUR), and Rs. 1.92 against the Pound Sterling (GBP).
Moreover, it lost 90 paisas against the Australian Dollar (AUD) in today’s interbank currency market.