By: Mohsin Siddiqui (Chief Reporter)
The Pakistani rupee (PKR) sustained its downward trajectory for the twelfth consecutive session, witnessing a depreciation of around 1.7 rupees against the US dollar in intraday trading. At the close, the local currency stood at PKR 286.9/287.4, with transactions reported at 287 per USD, marking a substantial decrease compared to the previous closing rate of PKR 285.29 per USD.
During the same period, open market rates indicate a decline of 1 rupee from the previous closing of 284 for buying and 287 for selling. The consistent devaluation of the local unit is attributed to amplified demand for foreign currency within the domestic economy. The depreciating trend in the Pakistani rupee is observed in conjunction with the widening trade deficit for October, soaring by over 38% Month-on-Month (MoM) to $2.099 billion, contrasting with the previous month’s deficit of $1.518 billion.
Anticipating a continued need for a premium in the local market due to the impending elections, the Pakistani rupee is expected to remain under pressure.
In a recent development, the International Monetary Fund’s (IMF) review mission acknowledged Pakistan’s government for meeting the set targets for the first quarter of the fiscal year 2023-24, offering a ray of positivity amidst the currency’s challenges. IMF Review, Fiscal Targets, Economic Stability. The consistent devaluation of the rupee underscores ongoing challenges in the foreign exchange market amid economic fluctuations and external factors. This trend coincides with wider concerns regarding trade imbalances and the impact of global economic dynamics on Pakistan’s currency stability.
