Islamabad, October 26, 2023 (PAKONOMY): The Pakistani rupee faced a persistent downturn as it depreciated against the US Dollar for the fourth consecutive day. Opening at 279 in the interbank market, the rupee’s value has been on a rollercoaster ride.

At 11:30 PM, however, there was a glimmer of hope as the rupee exhibited a bullish trend, reaching 276 against the greenback after gaining approximately Rs. 3. Despite the early optimism, the interbank rate later dipped to the 280 level between 1:30 PM and 2:30 PM. Ultimately, it settled in the range of 275-280 in open market rates across various currency counters.

The day concluded with the PKR depreciating by 0.07 percent, closing at 280.09 and shedding 21 paisas against the US Dollar, marking the fourth consecutive day of decline.

It’s noteworthy that the exchange rate gap between interbank and open market rates has shrunk by Rs. 61 since September 4. However, this doesn’t tell the whole story, as the Pakistani Rupee has been on a gradual downward trajectory. Since the beginning of 2023, it has lost nearly Rs. 63, and since April 2022, the decline has been even more significant, amounting to over Rs. 110 against the US Dollar.

In a significant development, the American multinational financial services company, Goldman Sachs Group Inc., issued a warning that the Pakistani Rupee’s recent recovery might be short-lived. The analysts at Goldman Sachs believe that factors like increasing interest costs and short-term arrangements with the International Monetary Fund, coupled with the need for bilateral financing, are likely to affect the rupee’s stability. They also noted that the market will continue to demand a premium for Pakistan’s rupee, especially with elections on the horizon.

While the PKR has shown impressive gains recently, surging by approximately 9 percent since late August, it remains in focus. Today, it experienced fluctuations against various major currencies. It lost ground against the Saudi Riyal and UAE Dirham, but it gained against the Canadian Dollar, Euro, British Pound, and Australian Dollar in the interbank currency market.

The performance of the Pakistani Rupee continues to be a matter of concern for investors and analysts, as it navigates the dynamic and often unpredictable global financial landscape. Its recent fluctuations underscore the impact of market dynamics and external factors on its value.

The situation remains fluid, and market participants are keeping a close eye on the rupee’s performance, hoping for more stability in the days ahead.

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