The Pakistani Rupee (PKR) lost ground against the US Dollar (USD) today, reversing last week’s gains.
The local unit fell 0.21 per cent against the US dollar today, closing at Rs218.89 after losing 46 paisas in the interbank market. During today’s open market session, the rupee hit an intraday low of Rs219.500 against the US dollar.
When trade resumed against the greenback, the local unit was all red and opened trade at Rs219.00 in the open market. By midday, the dollar had risen to Rs219.25 against the rupee. After 2 pm, the local currency remained in the red and remained at Rs218 against the top foreign currency before the interbank close.
Today was the fourth consecutive day that the rupee fell against the US dollar. Money changers are sceptical of a PKR recovery unless the government enacts stringent policies to combat the forex slowdown.
According to one regular trader, the market is also reacting to Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) winning six National Assembly seats in a by-election on Sunday, which was viewed as a direct contest between the former ruling party and the current ruling coalition.
While the market watches for any changes in monetary policy, the local unit is expected to fall further against the dollar. The State Bank of Pakistan (SBP) has begun clearing importers’ letters of credit (LCs), but money changers say the process could be put on hold if another shortage hits the dollar aisle in the coming days.
Leave a Reply