The Pakistani rupee resumed its downward spiral against the US Dollar during intraday trade today after opening trade at 286.05 in the interbank market.
At 11 AM, it was bearish, dropping as low as 287.725 after losing ~Rs. 1 against the greenback.
Later, it dropped to the 288 level between 12:30 PM and 1:15 PM and stayed at that level, before going back to 287.
Open market rates (documented) across multiple currency counters stayed in the 291-295 range.
At close, the PKR depreciated by 0.39 percent to close at 287.92 after losing Rs. 1.11 against the dollar today.
The informal exchange rate initially docked at 297-302.
Today’s cash rate per dollar in Hundi clocked in at the 296-303 band while many channels (undocumented) reported rates as high as 306.
The PKR crashed again for the 7th consecutive day today. Meanwhile, the gap between open and interbank PKR/USD rates widened further.
Today’s losses come after the government over the weekend nominated Finance specialist Ishaq Dar as the next potential caretaker Prime Minister of Pakistan.
The government may amend the Elections Act 2017 to allow the upcoming caretaker administration to make decisions beyond its constitutional mandate to bolster the economy and start receiving foreign investment for state property/businesses.
“Pakistan’s economy is at an inflection point where day-to-day decisions cannot be made for three months, but bypassing the real feel of a neutral setup to oversee upcoming General Elections is a big negative among market players,” a research policy analyst told ProPakistani.
One trader said last week’s reaction to the IMF exchange rate limit is visible today.
“Informal channels are beaming with expectations of massive turnover from Overseas Pakistanis. The premium will be problematic, so unless SBP decides to be authoritative, the black market will thrive and keep the rupee volatile,” he remarked.
Overall, the rupee is down nearly Rs. 62 since January 2023. Since April 2022, it is down over Rs. 111 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost Rs. 1.11 against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 29 paisas against the Saudi Riyal (SAR), 30 paisas against the UAE Dirham (AED), 34 paisas against the Australian Dollar (AUD), 47 paisas against the Canadian Dollar (CAD), and 89 paisas against the Pound Sterling (GBP).
Conversely, it gained 11 paisas against the Euro (EUR) in today’s interbank currency market.
Pakistani Zinda Bhaag :(
I’m really trying everyday