Last Updated on: 28th June 2023, 05:08 pm
Pak Rupee Breaks All-Time Highs Against The US Dollar Amid Bumpy IMF Talks And Oil Slides
The Pakistani Rupee (PKR)’s desperate plunge made history against the US Dollar (USD), posting losses in the interbank market today.
It depreciated 0.81% against the US Dollar to close at Rs 200.00 after losing Rs 1.60 in today’s interbank market. The local entity hit an intraday high of Rs 197.80 against the USD during today’s open market session. So far the dollar has gained Rs 13.31 against the rupee since last week and Rs 17.06 on 11 April 2022.
From the start of this fiscal year (1 July 2021) to date, the local unit has recorded a massive 27% (or Rs 42.45) drop from the previous fiscal year-end of Rs 157, Rs 54 y/y dollars.
The rupee broke above 200 against the dollar for the first time today after falling for the 10th straight day. The drop comes amid growing speculation about ongoing talks between the Pakistani government and the International Monetary Fund (IMF). While some analysts are predicting that the rupee will fall further below 200 rupees against the dollar in the interbank market, others are predicting that the currency will recover if the government commits to reforms envisaged in the IMF program.
Business Analyst A.H.H. Soomro told the news media official:
The psychological barrier is now broken. With 200 rupees, the government decided to work with the IMF and PDM gave the green light to difficult decisions. In addition, monetary policy decisions are already taken into account. If talks are successful and the government reverses fuel and electricity prices, the rupee’s decline is expected to reverse at any time.
In terms of global factors affecting the local economy, oil prices fell 2.5% in the early hours, reversing early gains as traders became less concerned about supply shortages after they emerged. Brent crude fell as low as $108.1, while US West Texas Intermediate (WTI) crude shed gains to settle at $108.
Also Read: Pak Rupee is Falling To a 9th Month Low Versus The US Dollar
PKR’s free fall against all other major currencies in the interbank market continued today. It lost 55 rupees against the Australian dollar (AUD), 1.12 rupees against the Canadian dollar (CAD), 1.22 rupees against the euro (EUR), and 1.53 rupees against the British pound (GBP).
He also lost 42 paisa against the Saudi Riyal (SAR) and 43 paisa against the United Arab Emirates Dirham (AED) in today’s interbank foreign exchange market.
Also Read: Pak Rupee Posts Back-to-Back Losses Versus The US Dollar
