Rupee Crashes Again Breaking the Winning Streak Against the US DollarNovember 24, 2021
The Pakistani Rupee (PKR) has broken its winning streak against the US Dollar (USD) once again and depreciated 73 paisas against the greenback in the interbank market.
It depreciated by 0.42 percent against the USD and closed at Rs. 175.04 today after it posted gains of 46 paisas and closed at Rs. 174.30 in the interbank market on Tuesday, 23 November.
With a fresh but nervous surge in valuation, the PKR was on course to engage positive trends as the exchange ledger projected bullish sentiments at the beginning of this week. The local currency had recently closed at an all-time low of Rs. 175.73 against the greenback on 12 November, and today’s market close was not far off.
The Rupee has succumbed yet again to bearish signals threatening to delaminate all the progress made in the last 72 hours. The market has projected positive growth for the long term so far but the near-term outlook betrays the recurrent emergence of storm-tossed trends as fiscal measures indicate how urgent reforms may get delayed, which the economy cannot afford in the meantime.
Furthermore, the latest agreement with the International Monetary Fund (IMF) involved Pakistan making a big deal out of receiving a tranche of $1 billion as the release of these funds is yet to be approved by the international lender.
The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, discussed the Rupee’s interbank showing in a tweet earlier today that read: “For [the] most part, in [the] last couple of days, market conditions remained choppy. By the close of the day #PKR managed to recover gaining 95 paisa[s] or 0.55% in 2-days”.
He concluded with a warning: “Staff level agreement with IMF is supporting the Rupee. Action is required in 4-areas. Delay is not affordable”.
The PKR failed to post gains against the other major currencies as well and posted losses in the inter-bank currency market today.
It lost Rs.1.13 against the Canadian Dollar (CAD), 60 paisas against the Australian Dollar (AUD), and 80 paisas against the Pound Sterling (GBP).
The Rupee re-entered its decrepit sway against the resurgent Euro (EUR) after it posted losses of 79 paisas against the eurozone currency. It also posted blanket losses of one paisa against the Malaysian Ringgit (MYR) and 10 paisas against the Chinese Yuan (CNY).
Moreover, it posted losses of 20 paisas against the UAE Dirham (AED) and 19 paisas against the Saudi Riyal (SAR) in the interbank currency market today.
Source: Pro Pakistani