The Pakistani rupee lost further ground against the US Dollar during intraday trade today after opening trade at 287.1 in the interbank market.
At noon, the market sentiment was bearish as the currency fell to as low as 290 against the greenback, experiencing a decline of around Rs. 2.
Between 12:30 PM and 1:15 PM, the currency made a strong recovery, surging back to the 289 level and remained stable thereafter.
Throughout the day, the open market rates offered by various currency counters ranged from 294 to 298.
At the close of the day’s trading, the Pakistani Rupee (PKR) experienced a depreciation of 0.64 percent, closing at 289.38 after a loss of Rs. 1.84 against the dollar.
The informal exchange rate initially docked at 299-302.
Today, the cash rate for the dollar in Hundi ranged between 300 and 304, with some unofficial sources reporting rates as high as 306.
The decline in the exchange rate is attributed to increased demand for the US dollar due to domestic import restrictions, while the government is also set to leave office by August 12.
A trader commented that today’s losses align with the predictions made in July, anticipating significant drops below 290 and reaching levels beyond 300, as the money markets establish new resistance levels.
Market sentiment and economic indicators continue to play a crucial role in determining exchange rates, and today’s drop indicates low confidence in the Pakistani Rupee’s ability to maintain its value. This lack of confidence is influenced by expectations of a decline in the dollar’s value after Fitch downgraded the US credit rating.
“In our view, there has been a steady deterioration in standards of economic policies over the past 14 months, including on fiscal and debt matters. Post-flood aftershocks and the abrupt regime change in spring last year continue to have adverse affect on the exchange rate,” one of them said via SMS.
Dollar rate further strengthens against rupee by Rs1.84 to Rs289.38
KARACHI: US dollar further strengthened against Pakistani rupee by Rs1.84 and closed...