During intraday trade today, the Pakistani rupee (PKR) fell to a new record low versus the US dollar and experienced significant losses. Today’s intraday trade saw a decline in the Pakistani rupee. With the interbank rate dropping 2 rupees to reach 289.2 around 11 AM. It continued to move slowly and remained between 288 and 289 around 1:25 PM.
The PKR lost Rs. 1.34 during today’s intraday session, declining by 0.85 percent to settle at 288.43.The currency saw losses today when Pakistan’s Finance Minister, Ishaq Dar, disobeyed the country’s Supreme Court by arguing that, given the nation’s economic unrest and security condition, now is not the time for provincial elections.
Since January 2023, the currency has lost roughly Rs 58. It has lost more than 106 rupees in value versus the dollar since April 2022. The PKR has experienced losses of more over Rs. 1.3 against the dollar based on the changes in currency rates seen today.
Money changers claim that today’s losses are a reflection of the political incident from yesterday, which aggravated the current economic unrest. Fundamentals are no longer helpful in balancing off budgetary pressures on the other end because the exchange rate has become the victim of a significant sentiment play.
They further stated that Pakistan was also in danger of going bankrupt. Despite the fact that the country’s central bank’s foreign exchange reserves would only be enough to fund four weeks’ worth of imports and that inflation is higher than 35%, an IMF bailout has been on hold since November.
The PKR was bearish against the other major currencies in the interbank market today. It lost 35 paisas against the Saudi Riyal (SAR), 36 paisas against the UAE Dirham (AED). Rs. 1.12 against the Canadian Dollar (CAD), Rs. 1.14 against the Euro (EUR). And Rs. 1.92 against the Pound Sterling (GBP).
In addition, it dropped 90 paisas in today’s interbank currency market against the Australian Dollar (AUD).
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