Rupee Starts June With Losses Against All Major Currencies Despite SBP News

The Pakistani rupee (PKR) suddenly fell against the US Dollar today after opening trade at 278 in the interbank market. It was slightly stable all day but closed in red against the greenback. It posted losses against most of the other major currencies during today’s session. The interbank rate stayed at 278/$ most of the day before closing at the same level. Open market rates across multiple currency counters were strictly at 278 today. The PKR depreciated by 0.01 percent to close at 278.36 after losing three paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.84 percent. Overall, the rupee is down nearly Rs. 50.76 since January 2023. Since April 2022, it is down Rs. 94.76 against the greenback. As per the exchange rate movements seen during the session, the PKR gained nearly four paisas today. In a key development, S&P Global Market Intelligence said today that the State Bank of Pakistan (SBP) is likely to lower the policy rate as the country’s headline inflation rate declined for the fifth consecutive month to 11.8 percent in May. The agency said inflation is projected to continue its declining trend in the coming months, majorly owing to favorable base effects. However, it is expected to remain in the double-digit range, with S&P Global Market Intelligence forecasting an average monthly year-over-year inflation rate of 13.7 percent for 2024. The PKR was green against some of the other major currencies in the interbank market today. It was stable against the Saudi Riyal (SAR) and gained one paisa against the UAE Dirham (AED). Meanwhile, it lost six paisas against the Australian Dollar (AUD), 20 paisas against the Canadian Dollar (CAD), 23 paisas against the British Pound (GBP), and 44 paisas against the Euro (EUR) in today’s interbank currency market.