Rupee Fades Back to Red Against Major Currencies Amid Political Uncertainty

The Pakistani rupee was bearish against the US Dollar today after opening trade at 281 in the interbank market. It faced pressure against the greenback but managed to stay in the 279-281 range against the $ during intraday trade today. The interbank rate stayed at 280 most of the day before closing at the 279 level. Open market rates across multiple currency counters were in the 279-282 range today. At close, the PKR depreciated by 0.02 percent and closed at 279.38 after losing seven paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.35 percent. Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 107 against the greenback. As per the exchange rate movements seen today, the PKR lost seven paisas against dollar. Traders pinned today’s loss on the rising political temperature in the country as state elements struggle to install a federal government in Islamabad. The PKR was red against all of the other major currencies in the interbank market today. It lost one paisa against the Saudi Riyal (SAR) and the UAE Dirham (AED), 72 paisas against the Australian Dollar (AUD), and 94 paisas against the Euro (EUR). It lost five paisas against the British Pound (GBP) and 29 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.