Rupee decreases Further Against US Dollar 2nd Day in a Row

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01st Aug, 2023. 07:05 pm
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Today, during intraday trade in the interbank market, the Pakistani rupee experienced a renewed decline against the US Dollar, starting at 287.3 at the opening.

At morning, it was bearish, falling as low as 288 after losing ~Rs. 2 against the rupee.

Afterward, it surged to the 287 mark from 12:30 PM to 1:15 PM and remained steady at that value.

Open market rates (documented) across multiple currency counters stayed in the 292-296 range.

At close, the PKR depreciated by 0.31 percent to close at 287.54 after losing 90 paisas against the dollar today.

Today exchange rate

The informal exchange rate started at 297-300.

As of today, the cash rate for one dollar in Hundi settled within the range of 298-303, but there were unofficial reports suggesting rates could go as high as 304.

Today’s losses come after the State Bank of Pakistan (SBP) on Monday decided to keep the policy rate unchanged at 22 percent.

The central bank’s monetary policy committee acknowledged some potential risks to inflation but also considered the delayed impact of previous monetary tightening, fiscal consolidation measures, and a modest economic growth forecast for FY24. The committee expects a gradual decline in year-on-year inflation over the next year, leading to a considerable positive real interest rate.

In regard to Pakistan’s debt situation, almost half of the maturing debt in FY 2023-24, which amounts to $11.3 billion out of $24.5 billion, will be rolled over. According to the central bank governor’s briefing, the incoming funds will be more than sufficient to cover the remaining financing needs.

SBP anticipates additional declines in dollar bond yields and forex reserves to surge above $10 billion by June 2024.

From January 2023 till now, the value of the rupee has dropped significantly by around Rs. 63. If we look back to April 2022, the rupee has lost more than Rs. 111 in value against the US dollar. Today, the Pakistani rupee (PKR) experienced a depreciation of 90 paisas in relation to the dollar.

Rupee decreases Further Against US Dollar 2nd Day in a Row

Web Desk

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