The Pakistani rupee depreciated against the US Dollar today after opening trade at 281 in the interbank market.
It was bearish against the greenback but managed to hold its own throughout the day.
The interbank rate stayed at 280 most of the day before closing at the 279 level. Open market rates across multiple currency counters were in the 279-281 range today.
The PKR depreciated by 0.03 percent and lost seven paisas to close at 279.27 against the dollar today.
On a fiscal year-to-date basis, the rupee has so far appreciated by 2.39 percent.
Overall, the rupee is down nearly Rs. 52.7 since January 2023. Since April 2022, it is down Rs. 96.37 against the greenback. As per the exchange rate movements seen today, the PKR lost seven paisas today.
Pakistan’s rating would likely be upgraded if government liquidity and external vulnerability risks decreased materially and durably, according to Moody’s Investors Service (Moody’s).
It said Pakistan’s credit profile reflects the government’s very high liquidity and external vulnerability risks as the very low levels of foreign exchange reserves remain well below what is required to meet its very high external financing needs over the near to medium term.
The rating would likely be upgraded if Pakistan’s government liquidity and external vulnerability risks decreased materially and durably. This could come with a sustainable increase in foreign exchange reserves. A resumption of fiscal consolidation, including through implementing revenue-raising measures, pointing to a meaningful improvement in debt affordability would also be credit positive.
The rating would likely be downgraded if Pakistan were to default on its debt obligations to private-sector creditors and the expected losses to creditors as a result of any restructuring were larger than consistent with a Caa3 rating.
The PKR was red against most of the other major currencies in the interbank market today. It lost one paisa against the UAE Dirham (AED), two paisas against the Saudi Riyal (SAR), 54 paisas against the British Pound (GBP), 86 paisas against the Euro (EUR), and 37 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.
Meanwhile, it gained 85 paisas against the Australian Dollar (AUD).