The Pakistani rupee fell against the US dollar for the seventh consecutive day, extending its losing streak. The rupee opened at 299.5 on the interbank market today, a new all-time low, heightening concerns about the currency’s stability.
The rupee plummeted to 304.925 per dollar during midday trading, representing a loss of approximately Rs. 5 that was significant. The consistency of this downward trend with the opening bell indicators highlights the severity of the rupee’s decline.
Between 1:30 and 2:30 p.m. in the afternoon, the rupee experienced a brief reprieve, regaining the 302 level. However, it quickly reverted to 304, reinforcing the downward trends for the remainder of the day.
Since the recent change in government, this persistent rupee depreciation has become more pronounced. In a brief period of time, the US Dollar has gained an alarming Rs 15.95 against the Pakistani Rupee, which raises concerns about the current economic policies and measures.
Various currency terminals recorded open market rates within the range of 307 to 312, illustrating the broad spectrum of the rupee’s weakness.
The PKR experienced a 0.46 percent depreciation by the end of the day, concluding at 304.45 and shedding Rs. 1.39 against the US Dollar. The widening gap between the black market rate and the official bank rate, which is currently 318-325, exacerbates economic insecurity.
August’s performance of the rupee has been disappointing, with prospective record lows predicted between 303 and 306. Since the beginning of 2023, the rupee has declined by roughly Rs. 84, and by a staggering Rs. 131 since April 2022, highlighting the critical need for corrective measures.
In a recent report, Moody’s highlighted Pakistan’s difficulties, including its inadequate infrastructure and governance, which impede credit benefits for emerging economies. This reflects the concerns that experts and financial institutions have expressed about Pakistan’s economic trajectory.
On the interbank market, the rupee fell against other significant currencies, such as the Australian dollar, Canadian dollar, British pound, Euro, Saudi riyal, and UAE dirham. The persistent decline elicits discussions regarding potential solutions to stabilise the naira and the economy as a whole.