Rupee crashes against US dollar

For the 5th day in a row, the PKR (Pakistani Rupee) experienced another crash. However, even though the International Monetary Fund (IMF) set a limit of 1.25 percent on the exchange rate, the gap between the PKR/USD rates at the opening and the interbank rates kept getting wider.

One trader said anomalous premiums were distorting the black market with more intensity, but he still expected the PKR to dock somewhere in the region of 290 and form resistance as this might indicate the likely acceptable value of the local unit against the greenback.

“Undocumented channels are booming with an unsupervised exchange of USD to PKR while overall, documented counters saw little to no activity as most trades had shifted beyond the scope of the regulator. Like yesterday, expect breaches at 290, or further below in the days to come. The new resistance line is near though, so the drop will halt later,” he remarked.

The value of the rupee has decreased significantly since January 2023, going down by about Rs. 60. It has also dropped by over Rs. 109 compared to the dollar since April 2022. Today, the rupee lost Rs. 1.34 against the dollar.

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