According to the Exchange Companies Association of Pakistan (ECAP), the Pakistani rupee on Monday fell to an all-time low of 215 against the US dollar in interbank trade as a result of the ruling PML-N’s crushing defeat in the Punjab by-elections, which has caused political unrest in the nation.
During today’s intraday activity, the rupee lost 4.3 rupees against the dollar.
We don’t yet know where the local currency will wind up after trading for the day.
The local currency has reached an all-time low, with the dollar currently trading for Rs. 215.25 on the interbank market.
The rupee hit a record low versus the dollar on June 21 when it closed at 211.48, and since then, the currency has continued erratic.
Meanwhile, with the bears controlling trading at the bourse, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) is also down.
As of 11:34 a.m., the index was down over 550 points, trading at 41,532.46 points.
Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company, attributed the decline in the rupee to pressure on import payment schedules and political unpredictability.
The by-election results on Sunday provided clarity, according to the expert, but the market is still waiting for a future plan.
“Market is looking for a direction, therefore investors are anticipating what would be the way forward. Will the coalition government announce early elections or not?” said Tariq.
The currency is weakening, but Arif Habib Limited analyst Ahsan Mehanti expressed optimism that it will soon rebound because all predictions favor the local currency.
The money Pakistan will get from the International Monetary Fund (IMF) as a result of the staff-level agreement, in Mehnti’s opinion, will provide the local currency a “much-needed breather.”
To read our blog on “Rupee loses 0.55% against Greenback in the interbank market today,” click here.
