The Pakistani rupee crashes against a significant decline in its value against the US Dollar, reaching a new record low.
Opening and Midday Rates: The day started with the Pakistani rupee at 296 against the US dollar, but by noon, it had dropped to around 300 due to negative market trends.
Afternoon Rates: Between 1:30 PM and 2:30 PM, the exchange rate reached 301 against the dollar, where it remained stable for the rest of the day.
Open Market Rates: Throughout the day, exchange rates in the open market ranged from 304 to 310 for various currencies.
Closing Rate: By the end of the day, the Pakistani Rupee (PKR) had lost 0.26% of its value, closing at 301 against the dollar, which means it lost 78 paisas during the day.
Week-Long Decline: The Pakistani rupee has been on a downward trend all week, especially since the new caretaker government took charge. The unofficial exchange rate, which differs from the official bank rate, has been even higher, trading between 313 and 319.
Future Predictions: Experts anticipate that the situation might worsen in the coming days, with the possibility of new record lows in August, ranging from 300 to 305 PKR against the US dollar.
Long-Term Decline: Looking back, the Pakistani rupee has lost about Rs. 81 since January 2023 and more than Rs. 128 compared to April 2022.
Central Bank’s Foreign Reserves: The State Bank of Pakistan reported a decrease of $125 million in foreign currency reserves in just one week. As of August 18, the reserves stood at $7.931 billion, down from $8.055 billion on August 11. This decline was attributed to the need to repay some debts.
In summary, the Pakistani rupee has been facing a significant decline in value against the US dollar, with short-term fluctuations and a week-long downward trend. The State Bank of Pakistan’s foreign currency reserves have also decreased due to debt repayments. The situation is of concern and may continue to be volatile in the near future. (Rupee Crashes Against)