Despite the FIA’s major initiative, the
rupee breaks another record against
the US dollar.
The Pakistani Rupee (PKR) fell to a new all-time low versus the US Dollar (USD) today, depreciating by four paisas in the interbank market. During today’s open market session, it touched an intraday low of Rs. 178.62 versus the USD.
The PKR fell 0.02 percent versus the USD today, finishing at Rs. 178.17 after falling marginally and closing at Rs. 178.13 in the interbank market on Friday, December 24.
Despite the Federal Investigation Agency’s (FIA) severe crackdown against illegal currency enterprises, the Pakistani Rupee fell to a record low of Rs. 181.3 versus the US dollar in the open market on Friday.
The chairman of the Exchange Companies Association of Pakistan, Zafar Paracha, blamed the rupee’s performance on the government’s lack of sincerity. According to a national publication,
economic facts indicate that the dollar is overvalued and that the exchange rate should be between Rs. 160 and Rs. 165.
He added that while the State Bank of Pakistan (SBP) has taken successful measures, the exchange rate has not reflected the same level of efficacy. The government, on the other hand,
has yet to take this seriously, and it looks that the establishment and the Bank are not on the same page, he noted.
It is worth noting that the sixth review meeting with the International Monetary Fund (IMF) is only a few weeks away, and many analysts believe that an agreement with the global lender will not do much for the local unit, as evidenced by loan receipts from the Asian Development Bank and the World Bank via separate channels.
Earlier in the day, Asad Rizvi, former Treasury Head of Chase Manhattan Bank, described how, in contrast to the current situation, things were easier due to the suspension of discussions with the IMF in June.
SBP is making modifications,” he continued. We’ve already seen 7 and 63 days for RR injections, with one more possible before the T-Bills auction.
In most other major currencies, the PKR has also continued its downward trajectory. It lost 24 paisas against the British Pound, 13 paisas against the Canadian Dollar, and one paisa against the UAE Dirham (AED).
Despite the intraday threat of value destruction, the rupee held its ground against the Saudi Riyal (SAR) and gained seven paisas against the Euro (EUR). In today’s interbank currency market, it also held off the Australian Dollar (AUD) and gained 16 paisas.