Rupee Crashes Against US Dollar, Gains Over Rs. 5 Against British Pound

The Pakistani rupee (PKR) crashed against the US Dollar and posted losses during intraday trade today.

The Pakistani rupee was all red during the early hours of intraday trade today with the interbank rate losing over Rs. 1 to reach 278 by 11 AM. By 11:25 AM, it dropped to 279 and stayed at this level.

At close, the rupee depreciated by 0.45 percent and suspended movement at 279.12 after losing Rs. 1.25 against the greenback.

The rupee reported losses and ended its 3-day winning streak today. Losses were substantial as the exchange rate struggled to build on last week’s momentum following clarity on Pakistan’s talks with the International Monetary Fund (IMF).

Globally, the dollar reached multi-month highs against the majority of major currencies on Wednesday, piling more pressure on the PKR.

The rupee is down almost Rs. 47 since its record-breaking single-day drop of Rs. 25 in the last week of January and has since then played in mostly red due to immense economic pressure.

Money changers say markets didn’t buy into Governor State Bank of Pakistan (SBP) Jameel Ahmed’s remarks today where he said Pakistan will soon finalize and sign a staff-level agreement (SLA) with the IMF for the release of roughly $1.1 billion through the lender’s Extended Fund Facility (EFF) program.

Overall, gains were impossible after Pakistan’s debt stock was reported to have reached Rs. 54.942 trillion in January 2023 as compared to Rs. 42.396 trillion in January 2022, an increase of Rs. 12.546 trillion. On a month-on-month (MoM) basis the debt stock increased by 7.7 percent from Rs. 50.996 trillion in December 2022, an increase of Rs. 3.946 trillion.

The PKR was green against most of the other major currencies in the interbank market today. It gained Rs. 1.40 against the Canadian Dollar (CAD), Rs. 2.53 against the Australian Dollar (AUD), Rs. 2.94 against the Euro (EUR), and Rs. 5.12 against the Pound Sterling (GBP).

Conversely, it lost 31 paisas against the Saudi Riyal (SAR) and 34 paisas against the UAE Dirham (AED) in today’s interbank currency market.

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