The Pakistani rupee concluded the week with a decline against the US dollar in intraday trade, starting at an interbank market opening rate of 277. Throughout the day, the currency experienced fluctuations, initially showing bullish signs by reaching 276.5 after gaining 59 paisas against the greenback at 11 AM.
Volatility and Speculation Surrounding PKR Exchange Rate
However, later in the day between 12:30 PM and 3:15 PM, the rupee dropped to the 277-278 level. Traders had predicted that the interbank rate would close lower than the previous day’s rate. Simultaneously, open market rates across various currency counters surged within the range of 282-287.
Analysts and Institutions Predict Further Depreciation
By the closing bell, the PKR experienced a depreciation of 0.31 percent, closing at 277.9 after losing 86 paisas against the US dollar. Additionally, the informal exchange rate showed significant fluctuations, reaching a peak of 278 at 11:30 AM before declining to 284.
Today’s losses have sparked speculation that the PKR may decline further, with some projections indicating a drop to 293.52 against the US dollar by the end of September 2023 and potentially as low as 317-340 by June 2024. Trading Economics analysts anticipate a fall to 293.52 by June 2024, while Pakistan’s Ministry of Energy (Power Division) projects a touch of 325 against the USD by the end of the fiscal year.
Bank of America (BoFA) Securities added to concerns, stating that high inflation, escalating debt, and a rising central bank policy rate could push the rupee as low as 340 against the dollar by June 2024.
