PKR faces 14th consecutive loss against USD, closes the week at Rs287

WEB DESK: The Pakistani rupee (PKR) experienced a depreciation of Rs2.178 against the US dollar this week, settling at Rs287.03.

This marks a change from the previous week’s closing rate of Rs284.31 per US dollar.

During today’s session, the local unit exhibited a loss of 13 paisa, with an intraday high (bid) of Rs287.4 and a low (ask) of Rs287.4 against the greenback.

In the open market, the PKR saw a decline of 50 paisa, with exchange companies quoting the dollar at Rs286.8 for buying and Rs287 for selling.

This is in contrast to the previous closing rates of Rs286.3 for buying and Rs286.5 for selling.

While the local unit initially showed positive momentum, gaining approximately 50 paisa against the USD during intraday trade, the market faced pressure due to the persistent gap between the demand and supply of dollars.

Consequently, the PKR recorded its 14th consecutive loss against the greenback.

The positive sentiment earlier in the day was influenced by the latest workers’ remittances data released by the central bank, revealing a notable 11.54 per cent month-on-month increase in October to $2.46 billion.

However, the challenges arising from the demand-supply disparity for dollars took precedence.

The heightened demand for dollars can be attributed to the easing of trade restrictions, aligning with the conditions set by the International Monetary Fund (IMF) for the Standby Agreement.

This situation placed additional strain on the local currency.

It’s noteworthy that Pakistan’s trade deficit for October widened by over 38 per cent month-on-month, reaching $2.099 billion, as compared to the previous month’s deficit of $1.518 billion.

Analysts from Goldman Sachs highlighted that the performance of the local currency is influenced by financing risks and the upcoming elections.

In a recent development, the review mission of the IMF applauded Pakistan’s government for meeting the targets set by the fund for the first quarter of the fiscal year 2023–24.

Read next: Pakistan Customs seizes illegal cigarettes worth Rs15.6 million