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Rupee Breaks All Records Against US Dollar As Uncertainty Rattles Markets

The Pakistani rupee resumed its record-breaking fall against the US Dollar today after opening trade at 304.1 in the interbank market.

At 12 PM, it was bearish, falling as low as 308.225 after losing ~Rs. 4 against the greenback, in tandem with opening-bell bears.

Later, it went back to the 305 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day.

Since the caretaker government came to power, the USD has gained Rs. 16.19 against the PKR.

Open market rates (documented) across multiple currency counters stood in the 309-315 range.

At close, the PKR appreciated by 0.06 percent to close at 305.64 after losing 17 paisas against the dollar today.

The black market rate has also moved further away from the Bank rate and trades in the 330-337 band. Meanwhile, currency dealers expect slowed slippages until the PKR finds a comfortable level to form resistance at. September may see multiple record lows of somewhere between 310-320. “Announcement of General Elections will offer more clarity and shun a few elements of uncertainty,” a trader said.

Pertinently, the rupee is down nearly Rs. 85 since January 2023. Since April 2022, it is down over Rs. 132 against the greenback. As per exchange rate movements witnessed today, the PKR has lost 17 paisas against the dollar.

In a key development, Pakistan’s trade deficit during August 2023 came in at $2.13 billion, down 40.5 percent compared to a trade deficit of $3.57 billion recorded in the same month of the previous fiscal year. The country’s trade deficit rose by nearly 30 percent to $2.13 billion in August 2023 compared to the trade deficit of $1.64 billion recorded in July 2023.

The country’s exports in August 2023 stood at 2.36 billion, down 4.8 percent over exports of $2.48 billion recorded in August 2022 while registering an increase of 14.3 percent over the exports of $2.07 billion recorded in the previous month.

The country’s imports in August stood at $4.49 billion, down nearly 26 percent compared to imports of 6.05 billion in August 2022. However, imports jumped 21 percent in August 2023 compared to imports of $3.71 billion recorded in the previous month.

The PKR was green against most of the other major currencies in the interbank market today. It gained 25 paisas against the Australian Dollar (AUD), Rs. 1.33 against the Canadian Dollar (CAD), Rs. 1.45 against the British Pound (GBP), and Rs. 1.47 against the Euro (EUR).

Conversely, it lost three paisas against the Saudi Riyal (SAR) and four paisas against the UAE Dirham (AED) in today’s interbank currency market.

Source: ProPakistani