The Pakistani rupee (PKR) continues to face pressure as it depreciated by over 17 paisa against the US dollar in Monday’s interbank session, settling the trade at PKR 305.6427 per USD compared to the previous session’s closing of PKR 305.47 per USD.
The currency saw an intraday high of 305.9 and a low of 305.5.
In the open market, Exchange Companies quoted the dollar at 331 for buying and 334 for selling, while availability remained scarce as market has resorted to Dollar Hording in anticipation of rising Dollar rate.
The stress over the domestic unit still persists due to the removal of restrictions on letters of credit (LCs) has led to an increased demand for dollars.
The gap between the interbank and open market rate has exceeded the recommended 1.25% threshold set by the International Monetary Fund (IMF). It is expected that Inter Bank Rate will catch up with the Open Market rate with the Intervention of SBP. Like previosuly witnessed, PKR may likley lose 5% to 10% in a single day in Interbank market to eliminate Inter-Bank and Open Market Spreads.
To note, the PKR lost around 1.46% of its value against the USD last week to settle at PKR 305.467 per USD.
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