The Pakistani rupee (PKR) continued to weaken against the US dollar during intraday trading today, as the interbank rate lost approximately Rs. 1 to reach 286 by 11 AM, and fell below 287 by 1:25 PM. At close, the PKR had depreciated by 0.78 percent to close at 287.29 after losing Rs. 2.25 during intraday trade.
The decline in the rupee’s value was attributed to the recent Supreme Court of Pakistan decision declaring the Election Commission’s delay of assembly elections in two provinces as unconstitutional and ordering snap polls in Punjab on May 14. This decision added to the existing political uncertainty in the country, leading to a decline in market sentiment.
The Pakistani rupee has been on a downward trend for some time, losing nearly Rs. 56 since January 2023 and over Rs. 105 against the greenback since April 2022. Today’s drop of over Rs. 2 against the dollar further reflects the daily decline in market sentiment, with Pakistan’s debt obligations putting additional pressure on its financial channels.
Money changers believe that effective management of external and fiscal accounts is crucial to avoid any further decline in the rupee’s value. While one trader expected today’s drop, they suggest that the apex court’s decision to hold elections next month will likely offer some breathing space, with potential gains in the remaining days of the week.
The Pakistani rupee continues to experience a slide against the US dollar amid the ongoing political turmoil in the country. It is vital for the government to manage the external and fiscal accounts effectively to stabilize the rupee’s value and restore market confidence