Last Updated on: 26th June 2023, 02:47 am
On the interbank market, the Pakistani rupee (PKR) posted further losses versus the US dollar (USD). Last week, on Friday, the PKR finally reversed its sustained decline after a full week of depreciation against the dollar.
The PKR closed at Rs. 155.31 per dollar at the end of today (Monday, June 7th), a significant decrease of 70 paisas compared to rupees 154.61 against the US dollar on Friday (June 4th) and exceeded the rupee limit. 155 exchange rate.
This is the first time the PKR-USD exchange rate has exceeded Rs. Limit 155 from March 25, 2021.
A.A.H Soomro, Managing Director of Khadim Ali Shah Bukhari Securities, told the online newspaper: “The pressure on the currency will ease when the economy opens, imports grow faster than exports and the REER at 103.”
Also Read: Pak rupee to fall across all major currencies after REER surge
He said the trade deficit is nearing the Red Zone amid high oil prices, TERF imports, economic recovery, and food exemptions. “However, referrals and RDAs are strong. Keeping yourself below Rs. 160 anytime soon is likely under political pressure.”
The recent decline in the PKR can be explained by the increase in the real effective exchange rate (REER) along with the high demand from importers for the dollar.
Distributors are seeing increased demand for dollars due to the fiscal year ending June 30, 2021, which is expected to keep the pressure on the local entity.
PKR fell significantly by Rs. 1.51 against the Euro, eroded significantly from Rs. 1.03 against the British Pound (GBP) and fell Rs. 1.78 against the Australian Dollar (AUD) and also recorded losses from 90 countries against the Canadian dollar (CAD). The PKR also lost nearly 19 countries to the United Arab Emirates dirham (AED) and 18.4 countries to the Saudi riyal (SAR).
Also Read: Rupee Continued to Slump Against The US Dollar
