Rupee Slides 6th Day in a Row Against US Dollar

The Pakistani rupee fell 6th day in a row against the US Dollar today after opening trade at 279 in the interbank market. At 11:30 PM, it was bearish, treading the 280 level against the greenback. Later, the interbank rate dropped to the 282 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day. Open market rates across multiple currency counters stood in the 280-283 range today. At close, the PKR depreciated by 0.14 percent to close at 280.95 after losing 38 paisas against the dollar today. The rupee closed in the red for the 6th consecutive day today. The gap between interbank and open market rates is down by Rs. 54 since 4 September. The rates have gone down to as low as 279 and have since continued brief spikes to 282 today. Pertinently, the rupee is down nearly Rs. 63 since January 2023. Since April 2022, it is down over Rs. 110 against the greenback. As per exchange rate movements witnessed today, the PKR has lost 38 paisas against the dollar. Traders link the rupee’s near-term outlook to the International Monetary Fund visiting Pakistan this week for the economic review of the $3 billion stand-by arrangement (SBA). The review comes in continuation of the 9-month SBA which was approved in July. Next week’s review of the ongoing program is expected to provide a forward-facing policy anchor for potentially unlocking the remaining bailout plus addressing domestic and external imbalances plus any pending issues with the forex market. The PKR was red against most of the other major currencies in the interbank market today. It lost nine paisas against the Saudi Riyal (SAR), 10 paisas against the UAE Dirham (AED), 22 paisas against the Euro (EUR), and 54 paisas against the Australian Dollar (AUD). Conversely, it gained 38 paisas against the Canadian Dollar (CAD) and 12 paisas against the British Pound (GBP) in today’s interbank currency market.