The Pakistani rupee ended the week with losses against the US Dollar during intraday trade today after opening trade at 285 in the interbank market.
At 11 AM, it was bearish, dropping as low as 286.725 after losing ~60 paisas against the greenback.
Later, it dropped to the 287 level between 12:30 PM and 1:15 PM and stayed at that level, before going back to 286.
Open market rates (documented) across multiple currency counters stayed in the 290-298 range.
At close, the PKR depreciated by 0.58 percent to close at 286.81 after losing Rs. 1.66 against the dollar today.
The informal exchange rate initially docked at 296-301.
Today’s cash rate per dollar in Hundi clocked in at the 298-305 band while many channels (undocumented) reported rates as high as 309.
The PKR crashed again for the 6th consecutive day today but the gap between open and interbank PKR/USD rates continued to expand.
Meanwhile, China has consented to extend the deadline for repayment of Pakistan’s publicly guaranteed debt of over $2 billion by two more years. This is a positive development as the current stock of forex reserves held in SBP is expected to stay above $8.5 billion till next week’s update.
Pertinently, the foreign exchange reserves held by the central bank soared by over 90 percent on a weekly basis due to inflows from Saudi Arabia, United Arab Emirates (UAE), and the International Monetary Fund (IMF).
On July 14, the foreign currency reserves held by the SBP were recorded at $8.727 billion, up $4.2 billion compared to $4.524 billion on July 7. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.065 billion, up $4.227 billion over the previous week.
One trader said anomalous premiums were distorting the black market with more intensity as seen on Thursday.
“Exchange rate controls are 90% at the mercy of market forces and movements suggest the next PKR/USD defense line at 290, or in the worst case, ~296. Volatility due to uncertainty and moods over upcoming General Elections are also putting pressure on the local unit,” he remarked.
Overall, the rupee is down nearly Rs. 61 since January 2023. Since April 2022, it is down over Rs. 110 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost Rs. 1.66 against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 45 paisas against the Saudi Riyal (SAR), 44 paisas against the UAE Dirham (AED), 52 paisas against the Canadian Dollar (CAD), and 71 paisas against the Pound Sterling (GBP).
Conversely, it gained 53 paisas against the Euro (EUR) and Rs. 1.11 against the Australian Dollar (AUD) in today’s interbank currency market.
Source: Pro Pakistani