The Pakistani rupee nosedived to its lowest ever of 300 against the US Dollar during intraday trade today after breaching below 296 at 12:10 PM as political turmoil haunts markets.
The Pakistani rupee fell during the first few hours of intraday trade today with the interbank rate losing Rs. 10 to fall as low as 300.25 by 1:30 PM, down by 3.3 percent. Open market rates across multiple currency counters registered highs of 310-315 after initial asks for the greenback opened at 306. Sellers have refused to sell the greenback as the outlook on the top foreign currency remains in the dark.
US Dollars are currently not available due to the fluctuation in the open market.
Sources said the local currency is moving in unison with the political turmoil gripping local markets. Trends have remained crimson since Tuesday when ex-Prime Minister Imran Khan was arrested at Islamabad High Court by paramilitary forces.
The black market rate has also come closer to the Bank rate and trades in the 310-320 band. Meanwhile, currency dealers said markets are red today and the rupee will drop even further with nationwide protests and state-meddling hurting investor confidence.
Another trader said the exchange rate moved in the low-to-negative range on Thursday as harder-than-expected Pakistani inflation forecasts and short-term estimates pointed to an aggravating economic slowdown in the cash-strapped economy, The mixed stock market data also weighed. “The PKR collapse, which follows disappointing data from the country this week, has raised more doubts over a rebound in exchange rate sentiments, and soured participation in money markets,” he added.
Pertinently, the rupee is down nearly Rs. 71 since January 2023. Since April 2022, it is down over Rs. 118 against the greenback. As per exchange rate movements witnessed today, the PKR has lost nearly Rs. 10 against the dollar.