The Pakistani rupee continued its decline against the US Dollar today after opening trade at 303.66 in the interbank market.
At 12 PM, it was bearish, falling as low as 304 after losing ~Rs. 1 against the greenback, in tandem with opening-bell bears.
Later, it went back to the 303 level between 1:30 PM and 2:30 PM and anchored trends for the remainder of the day.
Since the caretaker government came to power, the USD has gained Rs. 14.56 against the PKR in less than two weeks.
Open market rates (documented) across multiple currency counters stood in the 306-312 range.
At close, the PKR depreciated by 0.35 percent to close at 303.05 after losing Rs. 1.05 against the dollar today.
Trends have remained largely red all August. The black market rate has also moved further away from the Bank rate and trades in the 316-323 band. Meanwhile, currency dealers expect slowed slippages until the PKR finds a comfortable level to form resistance at. August may see multiple record lows of somewhere between 300-305, as reported earlier.
Pertinently, the rupee is down nearly Rs. 83 since January 2023. Since April 2022, it is down over Rs. 130 against the greenback. As per exchange rate movements witnessed today, the PKR has lost Rs. 1.05 against the dollar.
In a key development, one trader mentioned that the IMF will refuse any attempts at removing the cap on the USD/PKR premium of 1.25 percent. On other factors impacting market sentiment, he said the recent outcry against electricity prices has shaken investor confidence and will pound the exchange rate on its gradual terms. This would force the regulator to re-consider PKR/USD forecasts in upcoming cycles and set expectations at rates above 320 for December-end at the current pace.
The PKR was red against the other major currencies in the interbank market today. It lost 59 paisas against the Canadian Dollar (CAD), Rs. 1.41 against the Euro (EUR), Rs. 1.69 against the Australian Dollar (AUD), and Rs. 2.43 against the British Pound (GBP).
Moreover, it lost 29 paisas against the Saudi Riyal (SAR) and 29 paisas against the UAE Dirham (AED) in today’s interbank currency market.
Source: Pro Pakistani