Today, the Pakistani rupee plummeted to an unprecedented low against the US Dollar, creating a historic moment as it commenced trading at 296 in the interbank market.
By midday, the market showed signs of struggle, with rates declining to as low as 300, marking a drop of approximately Rs. 4 against the dollar. The initial bearish sentiment of the market contributed to this decline.
Subsequently, the situation exacerbated, reaching 301 between 1:30 PM and 2:30 PM, and the market remained at this level for the remainder of the day.
Throughout the day, exchange rates for various currencies in the open market were observed within the range of 304 to 310.
As the market concluded its operations, the Pakistani Rupee (PKR) had depreciated by 0.26%, closing at 301 in comparison to the dollar, reflecting a loss of 78 paisas during the day.
The market has experienced a consistent downward trajectory this week, particularly since the new caretaker government assumed its role. Additionally, the unofficial exchange rate, distinct from the official bank rate, has been even higher, hovering between 313 and 319. Experts are forecasting potentially more challenging conditions in the coming days, with expectations of new record lows in August, possibly within the range of 300 to 305.
In simpler terms, the Pakistani rupee’s value has significantly declined, with a decrease of about Rs. 81 since January 2023 and more than Rs. 128 when compared to April 2022 concerning the US dollar. On the specific day in question, the rupee lost 78 paisas against the dollar.
Furthermore, it’s noteworthy that the central bank’s foreign currency reserves have diminished by $125 million in just one week, a statistic disclosed by the State Bank of Pakistan on Thursday. As of August 18, the State Bank’s foreign currency reserves totaled $7.931 billion, indicating a decline from the $8.055 billion reported on August 11. The decrease in reserves was attributed to debt repayments made by the bank.