9th consecutive decline: Pakistani rupee closes at Rs283.43 against US dollar

WEB DESK: In Thursday’s interbank session, the Pakistani rupee (PKR) experienced a depreciation of 77.85 paisa against the US dollar (USD), settling the trade at PKR 283.43.

This decrease was observed from the previous day’s closing rate of PKR 282.65 per USD.

It is noteworthy that this marks the ninth consecutive session in which the Pakistani rupee has lost its value against the US dollar.

Consequently, the market is expected to demand a premium for Pakistan’s rupee ahead of the elections.

For the month of October, PKR concluded with a gain of 6.26 rupees, or 2.23 per cent, against the US dollar.

However, in comparison to major currencies, the PKR experienced a loss of 2.35 rupees against the Euro, closing at 300.43 compared to the previous value of 298.08.

Read more: Saudi company to acquire one of Pakistan’s most prominent petroleum companies

Additionally, the British Pound became more expensive by 1.74 rupees, closing at 344.74 compared to 343.01 the previous day.

Analysts have attributed this trend to financing risks and the upcoming elections, with Goldman Sachs’s analyst expressing a pessimistic outlook on the performance of the Pakistani rupee, which has been considered the best-performing currency.

Experts also anticipate that the recent appreciation of the Pakistani rupee will likely be short-lived due to increasing interest costs and only temporary arrangements with the International Monetary Fund (IMF) and bilateral financing to support the external balance.

Throughout the current financial year, the PKR has appreciated against the dollar by 2.57 rupees, or 0.91 per cent. However, in the current calendar year, the PKR depreciated by 56.99 rupees, or 20.11 per cent.