Rupee Depreciates Against the US Dollar as Stock Market Dives

The Pakistani Rupee lost 16 paisas against the US Dollar on Wednesday to close at 168.68.

Yesterday, it appreciated by 20 paisas against the US Dollar (USD) and closed at 168.52.

The Governor of the State Bank of Pakistan, Dr. Raza Baqir, said that he suspects that US dollars are being smuggled to Afghanistan from Pakistan and called on the concerned authorities to monitor the situation and take action against it.

He also explained that the Pakistani Rupee’s (PKR) depreciation over the past few months was due to the widening current account deficit.

The Pakistan Stock Exchange’s benchmark KSE-100 index slid 0.89 percent after a day of sharp volatility to close at 45,597.24.

The Head of Research at Intermarket Securities, Saad Ali, told Dawn News that the loss was “a late reaction” to the central bank’s decision to increase its policy rate by 25 basis points to 7.25 percent.

The former Treasury Head at Chase Manhattan Bank, Asad Rizvi, tweeted that the next treasury bill auctions will test the Ministry of Finance’s nerves.

The PKR also lost 16 paisas against the Euro, and four paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).

Meanwhile, it gained 62 paisas against the Pound Sterling (GBP), 27 paisas against the Canadian Dollar (CAD), and 41 paisas against the Australian Dollar (AUD).

Source: ProPakistani

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