[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Pakistani rupee concluded the week with a decline against the US dollar in intraday trading today, starting at 274 in the interbank market.
Around 11 AM, it showed mostly positive movement, reaching a high of 273 after gaining Rs. 3.4 against the US dollar.
However, it later retraced to the 277 level between 12:30 PM and 1:15 PM, where it remained.
In the open market, various currency counters maintained rates within the range of 283-288.
By the end of the day, the Pakistani rupee experienced a 0.41 percent depreciation, closing at 277.59 after losing Rs. 1.12 against the US dollar.
The informal exchange rate also decreased, briefly touching the 292 level at 11:30 AM before settling at 289.
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Cash rates per dollar in Hundi transactions ranged between 287 and 295, while unofficial reports suggested rates as high as 302.
Today’s losses followed remarks from the International Monetary Fund (IMF) regarding the need for ongoing reforms in Pakistan to address structural challenges, promote inclusive growth, and attract private capital inflows.
The IMF’s website provided “Frequently Asked Questions on Pakistan,” which outlined key policy recommendations to enhance revenue generation.
Despite the drop in value, the market exhibited volatility throughout the week, influenced by cash flows from the UAE, KSA, and IMF, which will be reflected in next week’s forex reserves update.
The recent IMF disbursement, along with previous funds from the UAE and KSA amounting to $1 billion and $2 billion, respectively, is expected to increase the State Bank of Pakistan’s foreign exchange reserves to over $8.5 billion.
According to one trader, today’s decline is not surprising, given the market’s volatility despite significant economic events during the week.
The trader added that the PKR is anticipated to move towards the 290-300 range by December ’23. While forex inflows are positive, economic reforms are necessary to stimulate growth and wealth creation. Managing debts is a concern, but adequate backups could help mitigate losses.
Overall, since January 2023, the Pakistani rupee has depreciated by approximately Rs. 52. Comparatively, since April 2022, it has experienced a decline of over Rs. 101 against the US dollar. In today’s interbank currency market, the PKR also lost value against other major currencies, including the Saudi Riyal (SAR), UAE Dirham (AED), Canadian Dollar (CAD), Australian Dollar (AUD), Euro (EUR), and Pound Sterling (GBP).[/vc_column_text][/vc_column][/vc_row]
