The Pakistani rupee dropped 4th day in a row against the US Dollar during intraday trade today after opening trade at 286.25 in the interbank market.
The Pakistani rupee was initially stable in the first few hours with the interbank rate rising as high as 286.125 and staying at that level. Open market rates across multiple currency counters remained above 300 and multiple counters still managed rates as high as 310 while a few documented channels briefly managed 297.
At today’s close, the PKR depreciated by 0.11 percent and closed at 286.88 after losing 32 paisas today.
The exchange rate initially gained ground and at 11:30 AM was stable. Meanwhile, today’s cash rate per dollar in Hundi is above 312; the current level could rise as high as 317 by the end of this week as agents seek higher margins despite scores of customers flocking counters for the greenback.
PKR gains were bleak with traders avoiding releasing USD cash flow as markets weighed news regarding the outgoing government’s estimate that next fiscal year’s growth rate will be around 3.5 percent. Pertinently, the World Bank in its latest report “Global Economic Prospects”, has projected a GDP growth rate of 2 percent for the fiscal year 2023-24 (FY24), a 1.2 percent downward revision from January, and 1.5 percentage points less than federal government estimates.
One trader told ProPakistani that the documented currency market rate is slowly converging with the undocumented level of 305-315 but the daily drops in valuation cannot be stopped without some major shifts in policy. “It seems the regulator is aiming for a full convergence of all markets which would help release unofficial restrictions on US Dollars for the time being. But the day-by-day rise/prominence in Hundi rates will keep all plans for a consolidated market on hold without strict interventions on SBP’s behalf,” he said.
Another trader suggested that the PKR will seesaw for the remainder of this month. He said markets could crash if Friday’s budget reveal extends any exchange rate tightening while a deal with the International Monetary Fund remains on hold.
Overall, the rupee is down nearly Rs. 62 since January 2023. Since April 2022, it is down over Rs. 110 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost 32 paisas against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost six paisas against the Pound Sterling (GBP), eight paisas against the Saudi Riyal (SAR), eight paisas against the UAE Dirham (AED), and 38 paisas against the Canadian Dollar (CAD), and 70 paisas against the Australian Dollar (AUD).
Conversely, it gained eight paisas against the Euro (EUR) in today’s interbank currency market.
