Slowly but surely Pakistani Rupee spirals down

KARACHI: Pakistani Rupee is showing a fluctuating trend in the international currency market today against the US Dollar. Early in the morning, PKR appreciated by 14 paisa in open market, according to forex dealers, trading at Rs 305.50 to the USD.

However, by noon, PKR has resumed its decline and deteriorated by Rs1.36, hovering around Rs 307 to the USD.
However, in the interbank market, the fluctuation was lesser, with an overall deterioration of 59 paisa, from the opening rate of Rs 306.63 to the USD in the morning to Rs 306.69 to the USD by the midday.

Yesterday, witnessed a steep plunge in PKR’s parity when it started trading nearly Rs 330 to the USD in the open market. Yesterday’s interbank movement was nearly as volatile as today’s with a total reported deterioration of 53 paisa for the local currency against the greenback.

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This was especially disconcerting after a marginal improvement of 7 paisa was seen for the PKR earlier in the day. The economic downturn has seen some level of stability since yesterday, owing to the expected investment inflow from the Saudi Arabia.

However, the investment deal and its eventual effect on the currency and other economic indicators remain to be seen.