The Pakistani rupee marginally recovered from its 3-day losing streak against the US Dollar today after opening trade at 289 in the interbank market.

At 12 PM, it was bullish, rising as high as 288 after gaining ~Rs. 6 against the greenback.

Later, it dropped to 294 between 1:30 PM and 2:30 PM and stayed at that level.

Open market rates (documented) across multiple currency counters stood in the 298-302 range.

At close, the PKR appreciated by 0.01 percent to close at 294.93 after gaining two paisas against the dollar today.

US Dollars are currently priced at higher premiums in the open market and are expected to expand further before during the financial year 2023-24. Today’s respite was seen as a prelude for further drops in the days ahead as traders eye 300 since non-banking channels continue to remain above this level.

Trends have remained largely red since July after the International Monetary Fund approved a new $3 billion bailout deal for Pakistan. Initially, the PKR rose as high as 275.4, with prominent analysts at the time tipping the local currency to rise as high as 250. However, the US Dollar interbank rate is up by ~Rs. 20 (=PKR down nearly 7 percent).

The black market rate has also moved further away from the Bank rate and trades in the 308-312 band. Meanwhile, currency dealers said markets are red today and the rupee will drop even further, with a peak expected after the next update on the country’s annual inflation reading.

Pertinently, the rupee is down nearly Rs. 75 since January 2023. Since April 2022, it is down over Rs. 122 against the greenback. As per exchange rate movements witnessed today, the PKR has gained just two paisas against the dollar.

Meanwhile, Pakistan’s total public debt stock of the federal government increased by 27.3 percent on a year-on-year (YoY) basis in June 2023 as compared to the same month of the last year.

According to the monthly data issued by the State Bank of Pakistan (SBP), the debt stock increased to Rs. 60.840 trillion in June 2023 as compared to Rs. 47.784 trillion in June 2022, an increase of Rs. 13.056 trillion.

The PKR was green against all of the other major currencies in the interbank market today. It gained 57 paisas against the British Pound (GBP) and Rs. 2.26 against the Australian Dollar (AUD).

Moreover, it held out against the Saudi Riyal (SAR) and the UAE Dirham (AED), gained 74 paisas against the Canadian Dollar (CAD), and Rs. 1.6 against the Euro (EUR) in today’s interbank currency market.

Source: Pro Pakistani