The Pakistani rupee (PKR) reversed gains and posted heavy losses against the US Dollar today.
The Pakistani rupee was largely bearish throughout intraday trade today with the interbank rate losing ~Rs. 1 to reach 284 by 11 AM. By 1:25 PM, it recovered to 283.875 and stayed at this level.
At close, the PKR depreciated by 0.10 percent and suspended movement at 283.92 after losing 53 paisas today.
The rupee was all red today after market sentiments collapsed after the coalition government downgraded the country’s growth rate projections to 0.8 percent for the ongoing fiscal year.
Currency dealers operating across Karachi and Lahore markets said investors’ confidence has been battered by uncertainties hovering over the elections schedule. This leaves the million-dollar question hanging in balance whether the National Elections would be held in 2023. One trader reiterated his yesterday’s comment on bears reappearing in the days ahead. He added the government’s recent projection regarding the assumption of “exchange rate stabilization” is faulty and might have played a role in discouraging dollar holders today.
While political uncertainty and economic shortfalls have contributed to the rupee’s weakness, one trader believes the PKR is playing with short positions before heading toward 300 against the USD.
Pertinently, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has lost 53 paisas against the dollar.
The PKR was all red against the other major currencies in the interbank market today. It lost 15 paisas against the UAE Dirham (AED), 15 paisas against the Saudi Riyal (SAR), 33 paisas against the Canadian Dollar (CAD), and 67 paisas against the Australian Dollar (AUD).
Moreover, it lost 94 paisas against the Pound Sterling (GBP) and Rs. 1.36 against the Euro (EUR) in today’s interbank currency market.
Our immature business community drives on speculations and misinformation rather then logic and reality thus our exchange rates. Even a fool can understand govt is again dictating the rate. Dollar is not available even at 300 in open market.