Last Updated on: 15th July 2023, 08:13 am
The Pakistani rupee (PKR) lost its uptrend on Friday and yesterday and again fell against the US dollar (USD). The last day of trading last week pulled PKR out of two weeks of decline.
On Monday this improved in nominal terms, but Tuesday ended in a loss of 13 paisas for PKR against the dollar.
PKR closed at Rs. 154.53 per dollar at the end of today’s trading day (Tuesday, June 1st) compared to Rs. 154.39 per dollar on Monday (May 31st).
Also Read: Dollar Rate in Pakistan Today 2nd June 2021
Regarding the continued decline in the PKR, traders believe there is a demand in the market for the USD that has pushed the former down.
This is despite the fact that constant-dollar inflows from foreign Pakistanis help keep the rupee stable. Friday’s improvement could be due to rising reserves at the State Bank of Pakistan (SBP), recent central bank data showed.
However, today’s decline can be explained by the increase in the real effective exchange rate (REER).
Former Chase Manhattan Bank CFO Asad Rizvi took to Twitter earlier in the day and said, “At first I expect a strong open rupee, but I’ll see if the tone is sustained or not [because] the Real Effective Exchange Rate ( REER)) has passed the critical benchmark of 100 and the new [REER] is 103.2982, which is not PKR compliant.”
The PKR also posted general losses against other major currencies today in the interbank currency market. PKR posted losses of 62 countries against the euro, 34 countries against the British pound (GBP), 12 countries against the Australian dollar (AUD), and 38 countries against the Canadian dollar (CAD).
PKR posted losses of 3.5 countries each against the United Arab Emirates Dirham (AED) and Saudi Rial (SAR) in the international foreign exchange market today.
