The Pakistani rupee further weakened against the USD on Wednesday. This is the second consecutive day where the rupee has fallen after a 22-day winning streak against the greenback.
In the interbank market, the rupee closed at 159.83 per dollar, compared to yesterday’s closing of 158.31. It lost Rs. 1.52 against the greenback during the session.
The rupee depreciated by Rs. 2 and was trading around 160.30 versus the greenback in the open market.
PKR weakened by 1.2% intraday on a high/low basis, making it the most volatile in the last five months. The rupee traded at the highest of 158.25 and the lowest at 160.10 today, said Komal Mansoor from Tresmark, an application that tracks financial markets.
In our research dated 7th Nov, our research team had pointed out major support at 158.10. Bankers talking with our research team have said the jump may be temporary as banks were covering their short positions in the market. An anonymous source at SBP said it’s a “market-driven correction”.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari, told ProPakistani that the correction is needed.
“One-way trajectory was not sustainable as imports rise. SBP’s TERF financing would lead to more machinery imports worth. Ripe time for SBP to ward-off speculators and save for the rainy day,” he added.
Despite consistent inflows of foreign exchange in the country due to overseas remittances and Roshan Digital Accounts along with export receipts, and a surge in foreign direct investment, the Pakistani rupee came under huge pressure today.