Rupee Posts Small Losses Against US Dollar After Troubling Fitch Projections

The Pakistani rupee (PKR) suddenly reversed gains against the US Dollar today after opening trade at 278 in the interbank market. It was bearish all day and closed in red against the greenback third day in a row. Meanwhile, it posted losses against most of the other major currencies during today’s session. The interbank rate stayed at 278/$ most of the day before closing at the same level. Open market rates across multiple currency counters were strictly at 278 today. The PKR depreciated by 0.02 percent and closed at 278.17 after losing six paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 0.06 percent. Overall, the rupee is down nearly Rs. 51.27 since January 2023. Since April 2022, it is down Rs. 95.27 against the greenback. As per the exchange rate movements seen during the session, the PKR lost six paisas today. Fitch Solutions has estimated the State Bank of Pakistan’s policy rate to fall to 16 percent this fiscal year, followed by a decrease to 14 percent next year. It predicts the PKR/$ rate to reach Rs. 290 by the end of the year and Rs. 310 by 2025. The credit rating agency’s latest Pakistan Country Risk Report highlights the economy’s precarious state, noting that Pakistan’s ongoing political unrest could jeopardize its economic recovery. The PKR was red against most of the other major currencies in the interbank market today. It lost one paisa against the UAE Dirham (AED), one paisa against the Saudi Riyal (SAR), 59 paisas against the British Pound (GBP), and Rs. 1.09 against the Euro (EUR) Meanwhile, it gained 27 paisas against the Canadian Dollar (CAD) and Rs. 1.09 against the Australian Dollar (AUD) in today’s interbank currency market.