The Pakistani Rupee (PKR) slid to a new record low against the US Dollar (USD) and depreciated by Rs. 1.54 against the latter in the inter-bank market today. It hit an intra-day record low of Rs. 178.10 against the dollar during today’s open market session.
The PKR depreciated by 0.88 percent against the USD and closed at Rs. 175.73 today after it posted losses of Rs. 1.25 and closed at Rs. 174.19 in the inter-bank market on Thursday, 11 November.
The Chairman of the Exchange Companies Association of Pakistan, Zafar Paracha, remarked that the USD had depreciated to Rs. 169.50 after Saudi Arabia restored financial support and oil supplies to Pakistan. However, the Adviser on Finance, Shaukat Tarin, has predicted that the value of the Dollar will continue to rise, which has led to speculations about who manipulated the market.
Paracha said that the delay in the International Monetary Fund’s Extended Fund Facility (EFF) has also sent the Rupee nosediving against the Dollar “because if this program was approved, we would have received $1 billion immediately”.
He suggested that an intervention from the State Bank of Pakistan will help to contain the rampant Dollar and position support for the Rupee.
Economic analyst A. A. H Soomro told ProPakistani,
Yes. Uncertainty over IMF program is negatively affecting the sentiment and giving rise to speculations. International oil prices are not helping either. IMF’s resumption should hopefully stop the descent.
The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, summarized today’s inter-bank fiasco in a tweet highlighting that the “#PKR that was holding up relatively well after the news of Saudi deposit & in hope of getting IMF nod lost nearly 440 paisa in 9-days due to delay”.
He also lamented the impact of the delayed release of the IMF funds and added, “Last night’s Saudi ambassador’s tweet should help, but IMF announcement delay could still keep market nervous”.
The PKR has depreciated by 13.34 percent since its high on 14 May amid high international commodity prices and the usual financial accord holdouts.
Moreover, the Rupee has lost 3.36 percent against the dollar on a Week-on-Week basis, and 2.37 percent and 9.94 percent on month-to-date and year-to-date bases respectively, according to Capital Stake.
The PKR continued its disappointing performance against the other major currencies as well and posted losses in the inter-bank currency market today.
It posted losses of 80 paisas against the Canadian Dollar (CAD), a whopping Rs. 2.19 against the Pound Sterling (GBP), Rs. 1.4 paisas against the Australian Dollar (AUD), and Rs. 1.55 against the Euro (EUR).
It also posted a loss of 42 paisas against the UAE Dirham (AED) and 41 paisas against the Saudi Riyal (SAR) in today’s inter-bank currency market.
Source: Pro Pakistani