The Pakistani rupee fell 12th day in a row against the US Dollar today after opening trade at 282.725 in the interbank market.
At 11:30 PM, it was stable at 284 against the greenback.
Later, the interbank rate dropped below the 286 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day. Open market rates across multiple currency counters stood in the 283-287 range today.
At close, the PKR depreciated by 0.38 percent to close at 286.39 after losing Rs. 1.10 against the dollar today.
The rupee closed in the red for the 12th consecutive day today.
Pertinently, the rupee is down nearly Rs. 69 since January 2023. Since April 2022, it is down over Rs. 116 against the greenback. As per exchange rate movements witnessed today, the PKR has lost over Rs. 1.1 against the dollar.
Taking stock of the forex situation of the past 2 weeks, some high-profile traders said in a text there is renewed uncertainty as predicted earlier that the local unit would reverse its 28-day win streak during the period leading up to the International Monetary Fund’s first review of Pakistan’s $3 billion Standby Arrangement.
“We’re a solid first week into the review. Critical data of 1QFY24 has been shared with the lender but emphasis is apparent on more stringent measures to improve the economy. Besides the caretaker government’s recent crackdown against black dollar trade, the fuss over the entire operation has died down a bit which has offered breathing space to underground cells dealing dollar at a high premium to interbank,” they said.
“Reversal in November will follow quick upticks in the weeks leading up to January 2024, but trends look uncertain due to doubts over whether free-and-fair elections will be held in February 2024. A backflip to below 300/$ won’t be a surprise. Markets have adjusted to recent pressures but upcoming inflationary trends could make things worse,” they added.
One of them also said hyperconsumerism due to uncertainty and global aftershocks such as the tragic Middle East crisis and its ripple effects in the shape of crude oil spikes will drive local inflation, and with that effect, hurt the rupee. “Investors avoid stressed business environments even if there’s motive for reconciliation,” he commented.
The PKR was red against some of the other major currencies in the interbank market today. It lost 29 paisas against the Saudi Riyal (SAR) and 30 paisas against the UAE Dirham (AED).
Conversely, it gained 38 paisas against the Euro (EUR), 76 paisas against the Canadian Dollar (CAD), Rs. 1.10 against the British Pound (GBP), and Rs. 1.88 against the Australian Dollar (AUD) in today’s interbank currency market.
Source: Pro Pakistani