The Pakistani Rupee (PKR) fell further against the US Dollar (USD) andposted losses during intraday trade today.
It depreciated by 0.11 percent and closed at Rs. 224.65 after losing 25paisas against the greenback. It quoted an intraday low of 225 against thegreenback before close.
The local unit was bearish against the greenback and opened trade in the224 range in the open market. By midday, the greenback moved higher againstthe rupee. After 1 PM, the local unit was red and stayed on the 224 levelagainst the top foreign currency the interbank close.
The rupee reported losses against the US Dollar sixth day in a row today,with PKR/USD rates touching as high as 250 in the informal/black market.The State Bank of Pakistan’s (SBP) limitations on foreign currency in orderto maintain the government’s shrinking reserves have created a shadowmarket for US dollars in Pakistan.
Money changers are saying the formal market is going through arguably itsbiggest dollar crunch since Zia ul Haq’s era. Immigrant workers are usingthe black market as it offers better profits. Remittances are expected toclock in at lower levels with November’s data just around the corner.
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Our channel checks are telling us that companies that are facing challengeswhile getting their transactions cleared by SBP are regularly tapping intothe black market. The informal market boom is expected to worsen asanalysts cite the February-June 2023 period as a reckoning for dollarhoarders.
Globally, oil prices fell on Monday, intensifying a multi-week decline, asa weakening global economy offset supply issues caused by confusionregarding Russian production cuts.
