Pakistani rupee witnesses biggest single-day decline against dollar in more than two decades

Pakistani rupee dropped significantly against the US dollar in the interbank market on Thursday, as it fell more than 9 per cent during the intraday trade. Around 1:30 PM, the dollar’s intraday quote was Rs254.75, which represents a depreciation of Rs23.86.

According to Ismail Iqbal Securities, “This is the largest single-day decline in both absolute and percentage terms, at least since 2000.”

Earlier in the day the local unit was trading under Rs231.

Experts predicted that as Pakistan attempted to meet the International Monetary Fund’s (IMF) requirements to renew its bailout programme, the local currency would depreciate significantly in the coming days.

While speaking to Brecorder, the Head of Research at Ismail Iqbal Securities Limited, Fahad Rauf, said it seems like the rupee has been let go today.

“This is a market-driven rate,” Rauf said. “This is a sign that we are moving closer to reviving the stalled IMF programme.”

The market expert said the development was much-needed, as capping the interbank rate only led to the creation of the grey market. He said that the development will improve the greenback supply to a significant extent.

On Wednesday, the rupee registered a loss for the 26th successive session against the dollar to settle at Rs230.89, a decrease of Re0.49 or 0.21 per cent.

Pakistani rupee on Thursday fell 9.61 per cent or Rs24.54 to a shocking all-time low of Rs255.43, according to the State Bank of Pakistan (SBP).

Interbank closing #ExchangeRate for todayhttps://t.co/8oc0zHCyvM pic.twitter.com/eBX6rw3FIF

— SBP (@StateBank_Pak) January 26, 2023