The Pakistani Rupee recovered from yesterday’s record low against the US Dollar today. Following the trend from previous weeks, the rupee closed the week with small gains and appreciated by 18 paisas against the dollar to close at 170.48.
The local currency appreciated after logging consecutive record lows over the last few days. On Thursday, it slid to a new all-time low against the US Dollar (USD) at 170.66 after closing the day at over 170 for the first time ever on Wednesday.
The market research firm Capital Stakes said that the Pakistani Rupee (PKR) has depreciated by 61 percent since 2015. It added that the PKR has lost 0.83 percent and 6.66 percent in value on week-over-week and year-to-date bases respectively.
Pakistan’s foreign exchange reserves declined by $252 million in the week that ended on 24 September, according to data released by the State Bank of Pakistan (SBP) on Thursday.
Fitch Ratings published a report saying that it expects the rupee to depreciate even further in 2022. It downgraded its forecasts for the PKR’s average rate against the USD to 180 in 2022 as compared to its prior projection of 165.
Chase Manhattan Bank’s former Treasury Head, Asad Rizvi, tweeted that the decline in the SBP’s foreign exchange reserves could mean a further widening of the current account deficit.
The PKR also gained 32 paisas against the Pound Sterling (GBP), and 13 paisas against the Australian Dollar (AUD).
In contrast, it depreciated 69 paisas against the Euro, two paisas against the Canadian Dollar (CAD), and five paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).
Source: Pro Pakistani