New low for PKR: US dollar now above 300 against rupee in inter-bank market

The Pakistani rupee registered a new record low as it dropped below the 300 level for the first time against the US dollar in the inter-bank market on Thursday.

At close, the rupee settled at 300.22, a decrease of Re0.58 or 0.19%, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee had fallen to the then record low against the US dollar, as it settled at 299.64.

The currency has come under renewed pressure after the authorities decided to lift import curbs, a key demand of the International Monetary Fund (IMF).

Experts said the depreciation also comes amid ongoing political instability.

“PKR devaluation will not stop till Pakistan achieves political stability,” Najam Ali, CEO Next Capital, said on X, formerly known as Twitter.

“This is critical for undertaking vital economic reforms. Such reforms will require broad political consensus. Too much political and economic uncertainty is causing economic chaos. These atrocious conditions are killers of investors’ confidence,” he added.

Internationally, the US dollar nursed a sharp pullback against Asian currencies on Thursday, after softer-than-expected global economic data muddied the interest rate outlook and pushed down US yields ahead of the Federal Reserve’s Jackson Hole symposium.

“Weaker than expected … data led markets to scale back their expectations for US policy,” said Commonwealth Bank of Australia currency strategist Carol Kong, with jobless claims the next focus ahead of Fed Chair Jerome Powell’s Friday speech.

The dollar index, which measures the greenback against a basket of six major currencies remains higher for the month, but dipped about 0.2% overnight.

Oil prices, a key indicator of currency parity, steadied after earlier declines on Thursday caused by disappointing economic data from key economies, with investors awaiting a speech by US Federal Reserve Chair Jerome Powell on Friday for clues on interest rate moves.

Inter-bank market rates for dollar on Thursday

BID                            Rs 300.10

OFFER                      Rs 300.30

Open-market movement

In the open market, the PKR lost 2.00 rupees for both buying and selling against USD, closing at 311.00 and 314.00, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 338.00 and 341.00, respectively.

Against UAE Dirham, the PKR lost 70 paisa for both buying and selling, closing at 86.20 and 87.00, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 83.20 and 84.00, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 311.00

OFFER                      Rs 314.00