As political unrest and economic uncertainty plague markets, the Pakistani rupee plunged below 300 against the US dollar during intraday trade today after breaching below 299 at 10:00 AM.
The interbank rate lost 50 paisas during the first 30 minutes of intraday trading today, falling as low as 300.25 before 10:15 AM, down 0.2 percent from Wednesday’s close. After initial asks for the dollar opened at 308, open market rates across many currency counters have yet to report changes from yesterday’s 307–312 range.
The interbank rate peaked at 300.25 at 10:05 AM before continuing to play with 300, as predicted by analyst warnings this week, leading to further losses.
Since the outlook for the most important foreign currency is still bleak, sellers have started stockpiling dollars at important cash counters across the nation.
Due to this week’s terrible drop, the black market rate has also widened relative to the bank rate and now trades in the 312–318 range, maintaining a gap of up to Rs. 15.
A trader claimed that since the caretaker administration took office, the exchange rate has been fluctuating in the low-to-negative range due to Pakistan’s higher-than-anticipated inflation forecasts and short-term trade deficit estimates, which indicate an escalating economic slowdown in the months to come. The mixed stock market data was taken into consideration. “The PKR crash, which follows disappointing CAD data from last week, has soured participation in the money markets and raised more questions about a rebound in exchange rate sentiments,” he continued.
Since January 2023, the rupee has lost nearly 82 rupees. It has lost more than 129 rupees in value against the dollar since April 2022. According to changes in exchange rates seen so far today, the PKR has dropped close to 50 paisas against the dollar.
Including today’s crash, the rupee has lost more than Rs. 196 since 2018. Since April 2022, the USD/PKR exchange rate has moved above all moving averages. It is expected to continue declining as trends point to lows below 300 in the coming days.
