Pakistani Rupee Continues Decline Against US Dollar for 17th Consecutive Day

Today marks the 17th consecutive day of decline for the Pakistani rupee against the US Dollar in the interbank market. It started trading at 287 but continued its descent throughout the day.

By 11:30 AM, the rupee showed signs of strength, climbing to 283 against the dollar, marking a gain of approximately Rs. 4 from the morning’s trade. However, this ascent was short-lived as the interbank rate fell back to 287 between 1:30 PM and 2:30 PM, stabilizing for the rest of the day. Open market rates fluctuated between 286 and 289.

At the close of the day’s trading, the Pakistani rupee depreciated by 0.09 percent, closing at 288.14 and losing 27 paisas against the dollar. This prolonged decline underscores the challenges facing the Pakistani currency.

In November alone, the Pakistani rupee has lost 2.31 percent of its value against the US Dollar, while its decline for the calendar year stands at approximately 21.5 percent.

Notably, since January 2023, the rupee has depreciated by nearly Rs. 72. Since April 2022, it has seen a significant drop of over Rs. 119 against the US Dollar. Today’s trading further highlighted this trend, with the rupee losing over 25 paisas against the dollar.

The ongoing negotiations with the International Monetary Fund (IMF) for the release of the second $710 million tranche, expected as early as December, add to the economic backdrop. IMF Managing Director Kristalina Georgieva stated in an interview with Bloomberg TV that Pakistan is nearing a deal this week. She commended Pakistani authorities and the Caretaker Finance Minister for their commitment to the program despite challenging circumstances.

In addition to its decline against the US Dollar, the Pakistani rupee also experienced losses against other major currencies in the interbank market today. It depreciated by seven paisas against the Saudi Riyal (SAR) and the UAE Dirham (AED), while facing more significant losses against the Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), and British Pound (GBP).