Pakistani rupee’s losing streak: PKR drops to Rs282.65 versus dollar

WEB DESK: In Wednesday’s interbank session, the Pakistani rupee (PKR) experienced a depreciation of 1.17 rupees against the US dollar, settling the trade at PKR 282.65.

This marked a decline from the previous day’s closing rate of PKR 280.95 per USD. Throughout the day, the local currency reached an intraday high (bid) of Rs282.75 and a low (ask) of Rs281.9.

Interbank closing #ExchangeRate for todayhttps://t.co/hjomOjLAL6#SBPExchangeRate pic.twitter.com/8nMHm9S96m

— SBP (@StateBank_Pak) November 1, 2023

Notably, this depreciation signifies the eighth consecutive session in which the Pakistani rupee has lost value against the US dollar.

Additionally, the PKR concluded the month of October with a gain of 6.26 rupees or 2.23 per cent against the greenback.

In the recent Monetary Policy Committee (MPC) meeting held by the State Bank of Pakistan (SBP) on Monday, the decision to maintain interest rates at 22 per cent was announced, aligning with market expectations.

However, analysts, including those from Goldman Sachs, anticipate the Pakistani rupee’s current strong performance to be short-lived due to financing risks and upcoming elections.

According to their report, the rupee’s recent appreciation is expected to be temporary, given the high interest costs and only short-term arrangements with the IMF and bilateral financing to support the external balance.

Consequently, the market is likely to continue requiring a premium for Pakistan’s rupee ahead of the elections.

Read more: Gold prices in Pakistan dip by Rs1,200 per tola in midweek market shift

Against the Euro, PKR gained 76.16 paisa, closing at Rs298.08 compared to the previous value of Rs298.84.

The British Pound became more expensive by 1.11 rupees, closing at Rs343.01 compared to Rs341.89 from the previous day. Swiss franc saw losses of 1.26 rupees, closing at 310.63 compared to Rs311.9 from the previous session.

Moreover, the UAE Dirham increased in value by 32.14 paisa from 76.633 a day ago to 76.955.

In the financial market, the benchmark 6-month Karachi Interbank Bid and Offer rates remained unchanged at 21.75 per cent and 22 per cent.

This current financial year has seen the PKR appreciate against the Dollar by 3.34 rupees or 1.18 per cent, while the calendar year has witnessed a depreciation of 56.22 rupees or 19.89 per cent.