LAHORE: The rupee witnessed uncertainty through intraday trading on Tuesday, with the interbank rate losing over Rs1 to reach 284.885 by 11 am, remaining at the 284 level by 1:25 pm, and eventually depreciated by 0.35 percent to close at 284.84 after losing 99 paisas.
Currency dealers attribute market declines to the arrest of former prime minister Imran Khan by law enforcement agencies at Islamabad High Court (IHC). Moreover, investors lost confidence after Moody’s Investor Service warned that Pakistan might default without receiving a bailout from the International Monetary Fund (IMF) due to its financing options beyond June remaining uncertain.
Traders anticipated that the rupee will decline further following the events in Islamabad as market sentiments may suffer if protests continue for an extended period.
The rupee has fallen by nearly Rs 55 since January 2023, while it is down by over Rs 102 against the greenback since April 2022. As of Tuesday’s exchange rate movements, the PKR has lost almost Rs 1 against the dollar.
