Today’s interbank market saw losses for the Pakistani Rupee (PKR), which once again saw advances against the US Dollar (USD) reversed.
It lost Rs. 1.15 in today’s interbank market and declined by 0.55 percent versus the USD to close at Rs. 210.95.
During today’s open market session, the local currency reached an intraday low of Rs. 211.04 versus the US dollar. The value of the dollar has increased by Rs. 28 versus the PKR since April 11.
Despite Pakistan’s staff-level agreement with the International Monetary Fund (IMF) for the distribution of $1.17 billion through the lender’s Extended Fund Facility (EFF) program for the South Asian country, the rupee ended the day down versus the dollar.
The unchecked rise in imports and the noticeably decreased rate of export growth are the main causes of the rupee’s depreciation.
This is reflected in the trade deficit, which rose to $48 billion in the fiscal year 2021–2022
As a result of paying off external debt and paying for imported oil, the central bank’s foreign exchange reserves have decreased to $9.717 billion, a $99 million decrease from $9.816 on June 30.
Only 5 weeks remain in the import cover, which gauges a nation’s ability to pay for imported commodities in foreign currency.
In today’s interbank market, the PKR lost ground against the majority of the other major currencies.
It dropped versus the Saudi Riyal (SAR), UAE Dirham (AED), Pound Sterling (GBP), and Euro (EUR) by 30 paisas, 31 paisas, 57 paisas, and 97 paisas, respectively.
In the current interbank foreign exchange market, the rupee gained 19 paisas against the Australian Dollar (AUD) and 41 paisas against the Canadian Dollar (CAD).
To read our blog “Rupee plunged to Rs. 207 against USD due to IMF deal postponement rumors,” click here.