Intraday Report: PKR surpasses 186 after new govt assumes charge

April 21, 2022 (MLN): Owing to the depleting foreign exchange reserves, the Pakistani rupee (PKR) has surpassed the mark of 186 against the US dollar on Wednesday in the intraday trade for the first time after the new government assumed the charge as it depreciated by 58 paisa.

The dollar was being quoted at 186.46/186.96 [9:24 PST] when compared to the previous day’s close of 185.92.

It is prudent to mention that the local unit staged a long bullish trend right after the appointment of Muhammad Shehbaz Sharif as the Prime Minister of Pakistan which has brought clarity on the political front.

However, the impact of political clarity has been wearing off and PKR has once again come under the severe pressure of widening current account deficit, falling foreign exchange reserves, and high commodity prices.

According to Asad Rizvi, the former Treasury Head at Chase Manhattan, foreign exchange reserves have slipped to a dangerous level.

He went on to say that payments in the last quarter of FY22 are sizeable that require additional funding and quick arrangements as support from exports and remittances may not be enough.

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