The Pakistani rupee failed to maintain Tuesday’s momentum against the US Dollar during intraday trade today after opening trade at 286.5 in the interbank market.
At 11 AM, it was initially bullish, rising to 275.14 after gaining Rs. 11 against the greenback.
Later, bears took control between 12:30 PM and 3:15 PM with the interbank rate losing nearly Rs. 3 to fall as low as 278.
Open market rates across multiple currency counters were stable in the 279-283 range.
At close, the PKR depreciated by 0.71 percent to close at 277.41 after losing Rs. 1.97 against the dollar today.
The informal exchange rate had recovered massively and at 11:30 AM rose to the 279 level, before falling slightly to 282.
Today’s cash rate per dollar in Hundi rose from as high as 291 to as low as 284, while many channels reported rates from 286 to as low as 297.
Today’s losses came after Finance Minister Ishaq Dar’s latest attempt to drive market sentiments when on Tuesday evening he said the real value of the US Dollar is around Rs. 250.
Speaking to Samaa News, the finance minister said that the US Dollar will settle near the real effective exchange rate. He said that in an article in May, Bloomberg calculated that the real effective exchange rate of the US Dollar is around Rs. 244.
The minister added that last year when he claimed that the US Dollar will fall below Rs. 200, at the time the real effective exchange rate was around Rs. 197.
One trader told ProPakistani that the interbank volume will continue to trade in the 270-280 range for the current week but is expected to remain volatile until the IMF’s first trance of a $3 billion bailout is credited in SBP reserves. For now, cash counters have normalized movement but unnecessary attempts to move PKR higher will only backfire.
The PKR was bearish against all of the other major currencies in the interbank market today. It lost 52 paisas against the UAE Dirham (AED), 53 paisas against the Saudi Riyal (SAR), and Rs. 2.65 against the Pound Sterling (GBP).
Moreover, it lost Rs. 1.01 against the Australian Dollar (AUD), Rs. 1.03 against the Canadian Dollar (CAD), and Rs. 1.7 against the Euro (EUR) in today’s interbank currency market.
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Dollar always shows the spring fashion. The more govt try to press higher it will go. Let the market decide and increase exports.
Your website name should be changed from propakistani to antipakistani. PK should move towards de-dollarization. US and west has used dollar as a weapon to destroy Pakistan economically.