Rupee plunges against the US dollar as politics and uncertainty fuel fear

During intraday trade today, the Pakistani rupee (PKR) suffered losses vs the US dollar and reversed gains.

The intraday trade for the Pakistani rupee was generally bearish early on Thursday, with the interbank rate dropping 1 rupee to hit 284 by 11 AM. It returned to the 283 level by 13:25 and remained there.

The PKR dropped 37 paisas during today’s intraday trade, shedding 0.13 percent of its value to close at 283.92.

As lawmakers introduced the Supreme Court (Practice and Procedure) Bill, 2023 on Tuesday in an effort to curtail the Chief Justice of Pakistan’s discretionary authority to take suo motu notice, the currency saw losses today.

Due to intense economic pressure, the rupee has been primarily in the red since its record-breaking single-day plunge of Rs. 25 in the final week of January, losing roughly Rs. 52. According to today’s currency rate movements, the Pakistani rupiah (PKR) has fallen today, recording a further decrease and ending close to the low of last week of 284.03.

A frustrated dollar dealer claimed that the IMF’s support is waning and that a bailout may not materialise before June. Others claimed that the staff-level agreement will be finalised within a few weeks, but this level of uncertainty is harming market sentiment.

In the interbank market today, the PKR was bearish relative to the majority of the other major currencies. It dropped versus the UAE Dirham (AED), the Saudi Riyal (SAR), the Euro (EUR), the Pound Sterling (GBP), and the Canadian Dollar (CAD) by nine, eleven, forty-four, sixty-six, and seventy-one pesos, respectively (CAD).

In contrast, it increased five paisas in today’s interbank foreign exchange market versus the Australian Dollar (AUD).

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