The Pakistani rupee slid against the US Dollar during intraday trade today after opening trade at 285.18 in the interbank market.
The Pakistani rupee was bullish in the first few hours with the interbank rate rising as high as 283.87 and staying at that level. Open market rates across multiple currency counters remained in the 290-295 gap but multiple counters still managed rates above 300 to as high as 310 despite new exchange rules for commercial banks implemented on Wednesday by the State Bank of Pakistan (SBP).
Open market rates gained over Rs. 27 to as high as 290.25 on Thursday.
At today’s close, the PKR depreciated by 0.11 percent and closed at 285.68 after losing 30 paisas today.
The exchange rate initially recovered massively and at 11:30 AM rose to the 283.87 level. However, today’s cash rate per dollar in Hundi is still above 312; many suggest it could remain above the current level.
Dollar buying has halted almost everywhere and traders are avoiding releasing USD cash flow as markets struggle to cope with the new interbank/open market settlement rule.
Pertinently, the cash rate in the informal market on Friday still averaged 310-318.
One trader told ProPakistani that the interbank volume has taken a hit just days after SBP fixed the dollar price for settling international payments. For now, cash counters have halted movement to avoid sellers’ pressure but the demand for foreign currency for Hajj expenses has made dealings difficult.
Another trader suggested that the new SBP rules would have a limited impact on the regulator’s bid to correct the exchange rate. In any case, the business community dealing in digital transactions is finding it tough to make ends meet with dollar payments either being delayed or put on hold.
Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 108 against the greenback. As per the exchange rate movements witnessed today, the PKR has lost 30 paisas against the dollar today.
The PKR was bearish against all of the other major currencies in the interbank market today. It lost seven paisas against the Saudi Riyal (SAR) and eight paisas against the UAE Dirham (AED).
Moreover, it lost Rs. 2.59 against the Canadian Dollar (CAD), Rs. 2.85 against the Euro (EUR), Rs. 3.14 against the Pound Sterling (GBP), and Rs. 3.34 against the Australian Dollar (AUD) in today’s interbank currency market.
Source: Pro Pakistani