The Pakistani Rupee (PKR) has been on a downward spiral, with the currency falling against the US Dollar for the 12th consecutive day. It opened at 282.725 in the interbank market but closed at 286.39, losing Rs. 1.10 against the dollar. The PKR has suffered a significant depreciation, losing almost Rs. 69 since January 2023 and over Rs. 116 since April 2022.
This decline is attributed to uncertainty surrounding the International Monetary Fund’s (IMF) review of Pakistan’s $3 billion Standby Arrangement, which has led to concerns about the local economy. High-profile traders suggest that the reversal of the PKR’s fortunes may continue in the coming weeks.
However, there are uncertainties about whether free and fair elections will be held in February 2024, adding to the unpredictability. The global economic landscape, marked by events like the Middle East crisis and rising crude oil prices, has also contributed to inflation and affected the rupee negatively. Investors are cautious about operating in such environments.
In contrast, the PKR gained slightly against some other major currencies in the interbank market, such as the Euro, Canadian Dollar, British Pound, and Australian Dollar. Nevertheless, the overarching trend suggests a weakening PKR, and the coming months may bring more challenges for Pakistan’s currency.