The Pakistani rupee was bearish against the US Dollar during intraday trade today after rising as high as 281.7 at 11:50 AM.
The Pakistani rupee was all red during the afternoon with the interbank rate losing 50 paisas to fall as low as 285.5 before rebounding back marginally. Open market rates across multiple currency counters still managed between 290-295 while traders expect the exchange rate to observe uncertain trends amid increased economic and political volatility.
At close, the PKR depreciated by 0.15 percent and closed at 285.4 after losing 44 paisas today.
Markets were bearish despite reports that Saudi Arabia was willing to deposit $2 billion in the State Bank of Pakistan against a small interest payment for one year.
Trade restrictions are also impeding economic progress since last year. The country’s current account posted a surplus of $18 million in April 2023, significantly lower than the surplus of $654 million (revised to $750 million) posted in March 2023.
Traders continued to advise caution on exchange rate movement for the remainder of May, with politics and economic disparities continuing to stagnate fiscal progress. “Issues among state affiliates and foreign lenders continue to pose a massive risk on exchange rate movement in the country. News about another bombardment of taxes in next year’s budget has sparked added dismay among investors with diverse portfolios. Dollar shortage isn’t far off if the situation persists,” a trader remarked.
The rupee is down nearly Rs. 58 since January 2023. Since April 2022, it is down over Rs. 105 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost 44 paisas against the dollar today.
The PKR was green against most of the other major currencies in the interbank market today. It gained 50 paisas against the Canadian Dollar (CAD), Rs. 1 against the Australian Dollar (AUD), Rs. 1.27 against the Euro (EUR), and Rs. 2.1 against the Pound Sterling (GBP).
Conversely, it lost 11 paisas against the Saudi Riyal (SAR) and 12 paisas against the UAE Dirham (AED) in today’s interbank currency market.
Source: Pro Pakistani