Karachi September 21 2022: Pakistan Rupee depreciate for the Fourteen consecutive day and drop by 74 paisa in today’s trading session as dollar hit two decade high amid dollar shortages in the domestic market due to imports related to flood relief measures and vegetables.
The dollar jumped to a new two-decade high on Wednesday, as comments from Russia's President Vladimir Putin rattled markets ahead of another likely aggressive rate hike from the U.S. Federal Reserve. The news propelled the dollar index, which measures the greenback's value against other major currencies, more than 0.5% higher to 110.87 - its highest level since 2002.
Recent floods have brought unprecedented crop damage. The Prime Minister of Pakistan ordered urgent relief measures to ensure an uninterrupted supply of onion and tomatoe in the local markets through imports as the prices have sky-rocketed in the local markets.
Pakistan Rupee depreciates 74 paisa or 0.31 percent in interbank to close at 239.65 against the dollar. Pakistan Rupee depreciates 8.83% or 21.04 in last fourteen sessions. Pakistan currency hit low of 239.94 on 29th July 2022 on uncertainty of IMF program.
The Rupee is PKR 29 or 0.12 percent away from hitting record low of 239.94. According to Bloomberg, the currency is among the worst performers globally in September, having fallen more than 8%.
In open market dollar remain unchanged at 244.8 at PST 15:00.
Minister for Planning, Development and Special Initiatives Ahsan Iqbal is optimistic that the foreign aid being received for the flood victims in the country could help stabilize the Pakistani Rupee.
Pakistan’s Finance Minister Miftah Ismail has stated while speaking to business community that there is still much pressure on the dollar which will not allow us for opening of LCs for imports.
To support Rupee, Government of Pakistan increased profit rates for overseas Pakistani’s on PKR denominated Naya Pakistan Certificates and also revised downward the minimum denomination of NPCs in a bid to increase reserves. Rate on PKR denominated bonds is increased by 5.5 percent for three month, 5.25 percent for six months, 5.00 percent for 12 months, 3.25 percent for three years and 2.5 percent for five year securities.
“The average banks’ buying per week was around two to four million dollars, which has now gone up to $12m on an average,” said Malik Bostan, the chairman of the Exchange Companies Association of Pakistan (ECAP).