The Pakistani rupee extended losses against the US Dollar during intraday trade today after opening trade at 277.5 in the interbank market.
At 11 AM, it was all green, rising as high as 272 after gaining ~Rs. 5 against the greenback.
Later, it returned to the 277 level between 12:30 PM and 1:15 PM and stayed at that level, before crashing below 279.
Open market rates across multiple currency counters dropped to the 287-292 range.
At close, the PKR depreciated by 0.60 percent to close at 279.26 after losing Rs. 1.67 against the dollar today.
The informal exchange rate initially rose and at 11:30 AM docked at the 286 level, before sliding to 295.
Today’s cash rate per dollar in Hundi clocked in at the 291-298 band while many channels (undocumented) reported rates as high as 305.
Today’s losses come despite Friday’s news that Pakistan has unlocked another $5.6 billion in financing after securing a $1.2 billion deposit from the International Monetary Fund (IMF).
IMF Mission Chief to Pakistan Nathan Porter said that the additional funds include $3.7 billion in commitments from bilateral partners such as Saudi Arabia and the United Arab Emirates, with $3 billion already disbursed.
Today’s losses come in tandem with last week’s trends which were filled with highs and lows of market players reacting to cashflows from UAE, KSA, and IMF.
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 goes to show how uncertainty can be detrimental to the exchange rate despite inflows.
“Interest rates and the impact of a weaker rupee on inflation will boost the exchange rate, but long-term growth is unlikely, with both factors so far unable to complement the economy despite hitting record levels in recent months. Forecasts put the rupee at above 285 to as high as 300 until elections are held,” he added.
Overall, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 103 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost Rs. 1.67 against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 44 paisas against the Saudi Riyal (SAR), 45 paisas against the UAE Dirham (AED), Rs. 1.48 against the Pound Sterling (GBP), and Rs. 2.18 against the Euro (EUR).
Conversely, it gained 51 paisas against the Canadian Dollar (CAD) and 66 paisas against the Australian Dollar (AUD), in today’s interbank currency market.
Source: Pro Pakistani