August 15, 2023 (MLN): The Pakistani rupee (PKR) faces immense pressure in today's session as the currency has lost around 3 rupees against the US dollar during intraday trade compared to the previous closing of PKR 288.49 per USD.
The local unit was quoted at PKR 291/291.5 [12:03pm PST] while in the open market, PKR is being traded at 298/301 per USD.
The gap between the open market and the interbank rate has widened to 2.41%.
To note, as per the Staff Report issued by the International Monetary Fund (IMF) on July 18, 2023, the exchange rates between Pakistani rupees and foreign currencies are to be determined free from any formal or informal influence.
The report also states that the board will ensure that the average premium between the interbank and open market rate is within 1.25% during any consecutive 5 business day period (continuous SB), once proper market functioning is restored,
As per media reports, restrictions on letters of credit have started to ease, which may lead to a weakening of the rupee.
Moreover, Pakistan’s dependence on imported oil makes it vulnerable to the constant rise of international oil prices in the past few weeks, which also affects PKR.
Brent Crude prices have risen by 19.26% since June 2023, reaching $86.02.
