The Pakistani rupee (PKR) reversed last week’s gains and posted losses against the US Dollar today.
The Pakistani rupee was all red throughout intraday trade today with the interbank rate losing over Rs. 1 to reach 284.625 by 11 AM. By 1:25 PM, it rebounded and stayed at the 283 level.
At close, the PKR depreciated by 0.09 percent and suspended movement at 283.85 after losing 26 paisas today.
The rupee ended the day with losses today after the staff level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) was delayed with the lender issuing its schedule of executive board meetings in which Pakistan hasn’t been included in any agenda until May 17, 2023.
Currency dealers said markets were red today with further clout expected in the coming days due to the IMF deadlock and economic uncertainty.
The IMF is dissatisfied with Islamabad’s progress in securing assurances on external financing from friendly nations and further demanded that the local authorities present a definitive repayment plan for the $3.7 million debt maturing in May-June 2023.
On the surface, Pakistan’s debt repayment issues in the next few months suggest a money crunch is likely. The recent junk classifications of Pakistan’s bonds by Fitch and Moody’s have stoked concerns over the government’s ability to repay and service its debt. One trader said the rupee could take some heavy beating because of this.
Pertinently, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has lost 26 paisas against the dollar.
The PKR declined against the other major currencies in the interbank market today. It lost seven against the UAE Dirham (AED), seven paisas against the Saudi Riyal (SAR), and Rs. 2.57 against the Canadian Dollar (CAD).
Source: Pro Pakistani