Today, the Pakistani Rupee (PKR) broke its previous record low against the US Dollar (USD) and lost ground in the interbank market.
It fell 0.25 percent against the US dollar today, closing at Rs. 201.92 after losing 51 paisa in the interbank market. During today’s open market session, the rupee hit an intraday low of Rs. 202.12 against the US dollar. In two weeks, the dollar has gained Rs. 15.23 against the rupee, and Rs. 18.98 since the new regime took power.
The rupee fell against the dollar for the fourteenth day in a row, despite reports that the Kingdom of Saudi Arabia was on the verge of extending its $3 billion deposit with the State Bank of Pakistan (SBP). According to Reuters, Saudi Finance Minister Mohammed al-Jadaan stated, “We are currently finalizing extending the $3 billion deposit to Pakistan.”
Domestic politics also played a significant role in keeping the forex market on its toes, as players on both sides of the fence intensified their narratives against one another. Riots have broken out across the country after the month-old government shut down roads leading to Islamabad, where former Prime Minister Imran Khan’s party is planning a large rally calling for the removal of the incumbent and immediate general elections.
Globally, oil prices maintained Monday’s gains as concerns about tight global supply continued to outweigh short-term trade forecasts. Brent crude rose to $114 per barrel, while West Texas Intermediate (WTI) crude in the United States rose to $111.
Today, the PKR fell further against the majority of the other major currencies in the interbank market. It fell two paisa against the Pound Sterling (GBP), 13 paisa against the Saudi Riyal (SAR), and 38 paisa against the Australian Dollar (AUD).