November 08, 2023 (MLN): The Pakistani rupee (PKR) witnessed another challenging trading session, losing an additional 11 paisa against the US dollar during intraday trading in comparison to the previous closing rate of PKR 286.39 per USD.
The local unit was quoted at PKR 286.4/286.9 [10:52 am PST] with the trades being reported at 286.5 per USD.
It is important to mention that the domestic currency is in the midst of a thirteen-day streak of losses against the greenback.
The open market rates for the respective period show that the local unit has shed 1 rupee in comparison to its previous closing of 285.3 for buying and 285.5 for selling.
This decline in the value of the local unit is attributed to the increased demand for foreign currency in the domestic economy.
It is important to mention that Pakistan's trade deficit for the month of October widened by over 38% MoM to $2.099 billion compared to a deficit of $1.518bn from the previous month.
According to Goldman Sachs's analyst, the performance of the local currency has concluded in the backdrop of financing risks and the upcoming elections.
"The recent appreciation of the Pakistani rupee will likely be short-lived, given soaring interest costs and only short-term arrangements with the IMF and bilateral financing to support the external balance," analysts led by Kamakshya Trivedi wrote in a Wednesday report.
Moreover, the local market will continue to require a premium for Pakistan's rupee ahead of the elections.
In a recent development, the review mission of the International Monetary Fund (IMF) last week appreciated Pakistan's government to meet the targets set by the fund for the first quarter of the fiscal year 2023-24.
