The world of currencies can be quite a rollercoaster, and today we have news about the Pakistani Rupee taking a pause in its recent winning streak against the US Dollar.
For the past 28 days, the Pakistani Rupee often denoted as PKR was on a winning spree against the US Dollar. But like all good things, this streak has come to a temporary halt. It all began when the PKR started the day’s trade at 278.5 against the US Dollar in the interbank market.
By 11:30 AM, the currency was holding steady, hovering around the 276 mark concerning the greenback. As the clock ticked to 1:30 PM, the interbank rate saw a dip, going down to 278, and it remained at 277 for the rest of the day. In the open market, the PKR’s value danced between 277 to 279.
By the time the day concluded, the PKR had depreciated by 0.07 percent, closing at 277.03 against the dollar after losing 20 paisas during the day. This marked a departure from the remarkable winning streak the Rupee had been enjoying.
You might be wondering why this happened. Well, it appears that talk about the International Monetary Fund’s (IMF) upcoming review of Pakistan’s bailout plan played a role. Such discussions can make the financial markets a bit jittery.
Despite today’s temporary setback, the gap between the interbank and open market rates has still improved by Rs. 60 since September 4. The Rupee had seen a low point at 277 and even made brief spikes up to 280 today.
To give you some context, the Rupee has experienced a decrease of nearly Rs. 59 since January 2023. Going further back to April 2022, it’s down over Rs. 106 against the US Dollar. Just to keep you updated, today’s exchange rate showed a loss of 20 paisas against the dollar.
It’s not just the currency market; the stock market also had its share of ups and downs. In a brief moment of excitement, the benchmark KSE-100 index almost crossed the 50,000-point barrier, a level it hadn’t seen in over six years. However, this surge didn’t last as gossip and reports about the upcoming IMF review reversed the gains, leaving the index at 49,531 after a 200-point drop.
The PKR didn’t just lose against the US Dollar; it faced a decrease in value against other major currencies. It saw a 5-paisa drop against the Saudi Riyal (SAR) and the UAE Dirham (AED). Additionally, it depreciated by 9 paisas against the British Pound (GBP), 42 paisas against the Canadian Dollar (CAD), 48 paisas against the Euro (EUR), and 92 paisas against the Australian Dollar (AUD) in today’s interbank currency market.