Today, the Pakistani rupee began trading at 304.1 in the interbank market before continuing its historically steep decline against the US dollar.
In line with opening-bell bears, it was bearish at 12 PM, dropping as low as 308.225 after losing Rs. 4 against the dollar.
Later, between 1:30 and 2:30 PM, it returned to the 305 level before anchoring trends for the rest of the day.
The USD has increased in value relative to the PKR by Rs. 16.19 since the caretaker government took office.
Open market rates (documented) were in the 309–315 range at various currency counters.
The PKR depreciated today against the dollar by 17 paisas, ending the day up 0.06 percent at 305.64.
The black market rate, which trades in the range of 330 to 337, has also drifted further from the bank rate. Currency traders anticipate slower slippages until the PKR finds a level it feels comfortable forming resistance at. Multiple 310–320 record lows are possible in September. The general election announcement will provide more clarity and eliminate some elements of uncertainty, according to a trader.
Relevantly, since January 2023, the rupee has lost nearly Rs. 85. In terms of the dollar, it has lost more than 132 rupees since April 2022. According to today’s exchange rate changes, the PKR has dropped 17 paisas against the dollar.
A significant development was that Pakistan’s trade deficit for the month of August 2023 was $2.13 billion, down 40.5 percent from the $3.57 billion deficit registered for the same month of the prior fiscal year. Compared to the trade deficit of $1.64 billion in July 2023, the nation’s trade deficit increased by almost 30 percent to $2.13 billion in August 2023.
The country’s exports in August 2023 totaled 2.36 billion, up 14.3 percent over the $2.07 billion exported in the previous month but down 4.8 percent from the $2.48 billion exported in the same month in 2022.
The nation’s imports in August totaled $4.49 billion, a decrease of almost 26% from the 6.05 billion in August 2022. However, compared to the $3.71 billion in imports recorded the month prior, imports increased by 21% in August 2023.
On the interbank market today, the PKR was in the green relative to the majority of the other major currencies. It increased by 25 paisas in value versus the Australian Dollar (AUD), 1.33 rupees versus the Canadian Dollar (CAD), 1.45 rupees versus the British Pound (GBP), and 1.47 rupees versus the Euro (EUR).
On the other hand, in today’s interbank currency market, it lost three paisas against the Saudi Riyal (SAR) and four paisas against the UAE Dirham (AED).
