PKR sheds 1.47 rupees against USD in intraday trade

August 21, 2023 (MLN): The Pakistani rupee (PKR) continues to face immense pressure as the currency lost 1.47 rupees against the US dollar during intraday trade compared to the previous closing of PKR 295.78 per USD.

The local unit was quoted at PKR 297/ 297.5 [1: 27 pm PST] with the trades being reported at 297.25 per USD, while in the open market, PKR is being traded at 303/306 per USD.

The decline can be attributed to the political uncertainty surrounding the General Elections, which is causing turbulence in local markets.

To note, PKR depreciated by 7.29 rupees or 2.46% during last week as the local unit remained under pressure mainly due to the removal of restrictions on letters of credit (LCs), which led to an increased demand for dollars.

The pressure still exists over the domestic currency as it continues to depreciate against the greenback.

Importers in Pakistan are finding it difficult to obtain import permits for their manufacturing needs due to dollar shortages, resulting in cargoes remaining stuck in ports.

This situation arises as the government restricts the demand for dollars to prevent the depletion of the nation's FX reserves.

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