The Pakistani rupee crashed below 294 during intraday trade today on Wednesday, its lowest-ever drop against the US Dollar since hitting close to 300 on May 11 after inflationary forecasts offset exchange rate sentiments following the caretaker government’s record-breaking increase in prices of petroleum products.
The Pakistani rupee fell during the first few hours of intraday trade today with the interbank rate losing Rs. 2.99 to fall as low as 294.75 by 12:30 PM, down by 1.1 percent. Open market rates across multiple currency counters registered highs of 304 after initial asks for the greenback opened at 302. Sellers have restricted greenback sales as the outlook on the top foreign currency remains in the dark.
US Dollars are currently priced at higher premiums in the open market and expected to expand further before today’s interbank close.
Sources said the local currency is moving in unison with the political uncertainty surrounding General Elections haunting local markets. Trends have remained largely red since July after the International Monetary Fund approved a new $3 billion bailout deal for Pakistan. Initially, the PKR rose as high as 275.4, with prominent analysts at the time tipping the local currency to rise as high as 250. However, the US Dollar interbank rate is up by ~Rs. 20 (=PKR down nearly 7 percent).
The black market rate has also moved further away from the Bank rate and trades in the 308-312 band. Meanwhile, currency dealers said markets are red today and the rupee will drop even further, with a peak expected after the next update on the country’s annual inflation reading.
Pertinently, the rupee is down nearly Rs. 75 since January 2023. Since April 2022, it is down over Rs. 122 against the greenback. As per exchange rate movements witnessed today till 12:45 PM, the PKR has lost nearly Rs. 4.5 against the dollar.
Source: Pro Pakistani