The Pakistani rupee’s downward trajectory continued as it dropped to yet another record low against the US dollar, settling at 305.54 in the inter-bank market on Thursday.

At close, the rupee was down Rs1.09 or 0.36%, as per the State Bank of Pakistan (SBP). This was its 10th successive fall in the inter-bank market.

On Wednesday, the rupee had closed at the then-record low of 304.45 against the US dollar in the inter-bank market.

Caretaker Finance Minister Dr Shamshad Akhtar on Wednesday told the Senate Standing Committee on Finance meeting presided over by Senator Saleem Mandviwalla that the caretaker government does not have the fiscal space for subsidies but added that the proposal was under consideration to withdraw electricity to privileged ones.

The Senate committee expressed concerns over the growing exchange rate fluctuations, unprecedented electricity cost, and 22 per cent interest rate that are making it challenging for current businesses to survive and thrive.

Globally, the US dollar was squeezed ahead of consumption, inflation and jobs data that could add to evidence of a softening economy.

US payrolls data is due on Friday, and the dollar has been under pressure as second-tier figures this week such as job openings and private payrolls have pointed to softness.

Overnight the Commerce Department revised down second-quarter growth to 2.1% from an estimate of 2.4%.

The dollar index, while still up more than 1% for August, has fallen 1% for the week so far as traders reckon U.S. interest rates may have stopped rising - even if they stay high.

Oil prices, a key indicator of currency parity, eased on Thursday after data showed China’s manufacturing activity shrank for the fifth month in a row, and as investors cautiously awaited a US personal consumption expenditure report later in the day for any clues on the interest rate outlook.

Inter-bank market rates for dollar on Thursday

BID Rs 305.50

OFFER Rs 305.70

Open-market movement

In the open market, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 320.00 and 323.00, respectively.

Against Euro, the PKR lost 7.00 rupees for both buying and selling, closing at 350.00 and 353.00, respectively.

Against UAE Dirham, the PKR lost 1.70 rupee for both buying and selling, closing at 89.20 and 90.00, respectively.

Against Saudi Riyal, the PKR lost 1.20 rupee for both buying and selling, closing at 86.20 and 87.00, respectively.

Open-market rates for dollar on Thursday

BID Rs 320.00

OFFER Rs 323.00


Comments are closed.

Tulukan Mairandi Aug 31, 2023 11:11am
Gonna keep slumping
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Zubair Hameed Aug 31, 2023 11:13am
Will this depreciation ever stop??
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Kashif ALI Aug 31, 2023 01:17pm
@Zubair Hameed , Yeah, it will stop as soon as the equilibrium is achieved. This depreciation would be a blessing in disguise.
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Asim Aug 31, 2023 04:43pm
Sadly another experiment by the neutrals gone horribly wrong for the whole country, obviously the whole nation will bear the brunt of it. I guess until the neutrals start thinking that this would lead to much worst outcome then the 1970 fallout which resulted in Bangladesh there will be this continuing downfall unabated.
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Concerned citizens Aug 31, 2023 05:38pm
@Kashif ALI, I doubt it, as no investment and investor is willing to come to Pakistan
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AmirSh. Aug 31, 2023 06:04pm
Unfortunately, our policy makers simply don't know how to control rapid rupee depreciation and our big brothers are too busy to mind their own business. They also know nothing about the economy or rupee depreciation and its impact on the financial health of general public. Burden of all this mess is again on the week shoulders of public. SAD!!!
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AmirSh. Aug 31, 2023 06:25pm
Weak economic fundamentals, low foreign remittances, high dependence on imports, low exports , instable political situation in the country, incompetent and corrupt leadership....and list goes on....are the real issue our country facing these days and these are the real reasons for this economic mess. and unfortunately, there is a no quick fix to this economic mess created in last few decades. Stable political system and a sincere leadership can only put the country back on path of progress and development and for that timely, fair, and transparent elections are a tiny step toward right direction.
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Observer Aug 31, 2023 07:26pm
@Asim , not the whole nation.. only the tax payers and lower income class will bear the brunt. The rich and influential will probably get exemptions as they always have in the past.
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TheActualTruth Aug 31, 2023 07:46pm
@Kashif ALI, "Blessing in disguise", in the same way the last PDM Mafia government was or the current so called "Care Taker" Puppet tola is. We have been waiting for all these blessings to shed their guise for more than 18 months but they are not coming out. Hopefully they will reveal themselves before this nation reaches its demise.
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Tanveer Hussain Aug 31, 2023 09:21pm
In 2022, Pakistan imported around $16 billion worth of items from China, $8 billion from UAE (mostly oil), $5 billion from Saudi Arabia (mostly oil), $4 billion from Qatar (mostly oil). Overall, Pakistan imported $25 Billion worth of oil in 2022. If all the oil imports worth $25billion dollars and all imports from China $16 billion (25+16 = $41B) are done in currencies other than dollars, then pressure on dollar can be reduced. Can we convince China to export to us against Chinese Yuan? And Can we get oil & gas from Iran and Russia in currencies other than dollar? If we can do this, half of our economic problems may be sorted out.
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