As political uncertainty plagues markets, the Pakistani rupee plummeted below 300 versus the US Dollar during intraday trade today.
The interbank rate dropped Rs. 10 to 300.25 by 1:30 PM, down 3.3 percent. After opening at 306, various currency counters reached highs of 310-315. The top foreign currency’s future is cloudy, so sellers won’t sell the dollar.
Sources say the local currency is following political upheaval in local markets. Since paramilitary troops detained ex-Prime Minister Imran Khan at Islamabad High Court on Tuesday, trends have been red.
The black market rate is now 310-320, similar to the Bank rate. With countrywide protests and state intervention eroding investor confidence, currency dealers claimed markets are red today and the rupee will plummet even further.
Another trader said the currency rate moved in the low-to-negative zone on Thursday as harder-than-expected Pakistani inflation forecasts and short-term estimations indicated a worsening economic slowdown in the cash-strapped country. Mixed stock market data weighed. “The PKR collapse, which follows disappointing data from the country this week, has raised more doubts over a rebound in exchange rate sentiments and soured money market participation,” he added.
In January 2023, the currency fell nearly Rs. 61. It fell roughly Rs. 108 against the dollar from April 2022. Today, the PKR lost roughly Rs. 10 against the dollar.