The Pakistani rupee closed the week with losses against the US Dollar during intraday trade today after opening trade at 274 in the interbank market.
At 11 AM, it was mostly bullish, rising as high as 273 after gaining Rs. 3.4 against the greenback.
Later, it returned to the 277 level between 12:30 PM and 1:15 PM and stayed at that level.
Open market rates across multiple currency counters remained in the 283-288 range.
At close, the PKR depreciated by 0.41 percent to close at 277.59 after losing Rs. 1.12 against the dollar today.
The informal exchange rate fell and at 11:30 AM fell to the 292 level, before docking at 289.
Today’s cash rate per dollar in Hundi clocked in at the 287-295 band while many channels (undocumented) reported rates as high as 302.
Today’s losses come after the International Monetary Fund’s (IMF) Director Communication Julie Kozack said Pakistan’s continued reforms over the medium term to underpin the needed economic transformations and resolve structural challenges, strengthen inclusive growth prospects, and create an environment conducive to renewed private capital inflows.
The Fund on its website also uploaded “Frequently Asked Questions on Pakistan”, which included the key policy recommendations to increase revenue mobilization.
Despite today’s drop, the week was filled with highs and lows of market players reacting to cashflows from UAE, KSA, and IMF which will be reflected in next week’s forex reserves update.
Thursday’s IMF tranche, along with previous disbursements of $1 billion from the United Arab Emirates and $2 billion from the Kingdom of Saudi Arabia, will raise the SBP foreign exchange reserves in excess of $8.5 billion.
One trader told ProPakistani that today’s drop isn’t a surprise, but rather a depiction of how volatile the market is despite significant economic events observed during the week
“Expect the PKR to make strides toward the 290-300 band before December ’23. Forex inflows are a godsend, but not a cause for jubilation. The next step, as mentioned in prior discussions, is the initiation of economic reforms that inspire growth and wealth-building. Securing hedges through debt is an issue but sufficient backups could help keep losses at bay,” he added.
Overall, the rupee is down nearly Rs. 52 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost Rs. 1.12 against the dollar today.
The PKR was bearish against all of the other major currencies in the interbank market today. It lost 29 paisas against the Saudi Riyal (SAR), 31 paisas against the UAE Dirham (AED), and Rs. 1.65 against the Canadian Dollar (CAD).
Moreover, it lost Rs. 1.73 against the Australian Dollar (AUD), Rs. 3.17 against the Euro (EUR), and Rs. 3.65 against the Pound Sterling (GBP) in today’s interbank currency market.
