The Pakistani rupee hit an intraday low of 289.75 versus the US dollar today.
By 1:30 PM, the interbank rate dropped Rs. 6.35 to 289.75.23. After opening at 290, various currency counters reached highs of 290-295.
After paramilitary forces detained ex-Prime Minister Imran Khan at Islamabad High Court on Tuesday, sources said the local currency would be at market forces today.
The black market rate is now 290-295, similar to the Bank rate. Currency dealers stated markets are red today and the rupee may decline further due to countrywide protests weakening investor confidence.
Another trader said default rumours this week had fueled the exchange rate. Markets are unsettled by IMF-friendly countries funding uncertainty. The political saga and this will hurt mood in the coming weeks. “June will be difficult for us all with the budget presentation just around the corner,” he added.
In January 2023, the currency fell nearly Rs. 61. It fell roughly Rs. 108 against the dollar from April 2022. The PKR lost about Rs. 6.4 versus the dollar today.