After Finance Minister Ishaq Dar failed to persuade donors to pump additional investments into the cash-strapped nation, the Pakistani Rupee (PKR) continued to fall against the US Dollar (USD) and reported losses of Rs. 2.13 during intraday trade today.
It dropped in value by 0.99 percent and traded below 220 versus the US dollar, losing more than Rs. 1.50. The local currency’s intraday low rate versus the US dollar was 220.985.
The local currency was completely in the red when trading reopened in the open market at 219.50 in the morning versus the US dollar. The dollar’s value versus the rupee dropped as low as 219.75 around 10:15 AM. The dollar’s value versus the rupee dropped as low as 219.90 around lunchtime. After 1:00 PM, the local currency lost more ground and remained at a value of 220-221 versus the major foreign currency.
As informal prices varied between 226 and 236 against the interbank low of >220 against the US Dollar, the difference between the interbank and open market increased by more than 5 rupees.
Money changers interpret today’s currency rate fluctuation as a decrease in feelings motivated by Dar, which started to lose their impact last week.
To read our blog on “SBP denies rumors that the market intervened to lower the dollar’s price,” click here