Rupee Falls Against US Dollar With IMF Bailout Off the Table

The Pakistani rupee fell against the US Dollar during intraday trade today after opening trade at 286.5 in the interbank market, initially pushing higher by over Rs. 1.

The Pakistani rupee was stable earlier today with the interbank rate rising as high as 286.45 before falling again. Open market rates across multiple currency counters (undocumented) still remained above 300 to as high as 309 while a few channels managed 311.

A few documented channels managed as high as 296 against the greenback.

At today’s close, the PKR depreciated by 0.02 percent and closed at 287.26 after losing seven paisas today.

PKR losses were in tandem with macro trends and were expected by most traders who viewed today’s decline as a prelude to a bigger plummet this week. “The rupee might fall below 290 this week. With the IMF deal apparently off the table in the outgoing fiscal year and a highly disappointing budget exercise for the new year, the exchange rate will remain under pressure. Artificial controls will only delay the plunge. Even if the authorities allow the market to correct itself in the coming months, political turmoil and debt servicing complications will further derail rupee recovery,” one of them commented.

Another trader said, “Clarity from the IMF was much needed since February’s SLA holdout, but last week’s damaging remarks from the lender suggest no room for convergence on policy-related implementations next financial year. Sentiments will continue to impact the exchange rate and the PKR will stay on unchartered waters until there’s better vision for consolidation”.

Overall, the rupee is down nearly Rs. 61 since January 2023. Since April 2022, it is down over Rs. 109 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost seven paisas against the dollar today.

The PKR was bearish against some of the other major currencies in the interbank market today. It lost 67 paisas against the Canadian Dollar (CAD) and 81 paisas against the Pound Sterling (GBP).

Conversely, it gained one paisa against the UAE Dirham (AED), one paisa against the Saudi Riyal (SAR), 30 paisas against the Euro (EUR), and 38 paisas against the Australian Dollar (AUD) in today’s interbank currency market.

Source: Pro Pakistani