ISLAMABAD (our reporter):- The landslide victory of Pakistan Tehrik Insaf against The ruling Pakistan Muslim League-Nawaz in the Punjab by-elections that has triggered political uncertainty along with import pressure took the Pakistani Rupee to a new low against the US dollar in the interbank market Monday.
The data of the State Bank of Pakistan (SBP) shows that the PKR lost Rs4.25, or 1.97%, against the US dollar to close at an all-time low of Rs215.20 which is the highest day-on-day depreciation after March 26, 2020.
On June 2022, the PKR had closed at a record low of 211.93 against the US Dollar and since then the currency has remained volatile.
The analysts believe that the import payment pressure and political uncertainty which was created due to by-election were main reasons for the rupee’s hit.
Sunday’s by-election in Punjab results gave clarity but the market is awaiting a strategy going forward.
The market is looking for direction in the prevailing political situation. The investors are anticipating what would be the way forward. Will the coalition government announce early elections or not.
On the other hand, there is also sentiment in the market that the depreciating PKR would recover soon.
The analysts believe that the issuance of tranche by the International Monetary Fund will strengthen PKR against US Dollar in coming days.
The Pakistan Stock Exchange (PSX) has also reacted panic to the results of by-election in Punjab which triggered the political uncertainty in the country.
The PSX plunged Monday as its benchmark KSE-100 lost over 700 points. Investors reacted with panic to the depreciating PKR against the US dollar and political uncertainty in the wake of the preliminary results of the by-polls in Punjab.
The market opened at 42,074 points but it plunged by 707.80, or 1.68%, points to close at 41,367.11 points.
Analysts says that the results of the by-elections in Punjab has created a lot of ifs and buts.
Sectors contributing to the performance included banks (-127.6 points), cement (-106.6 points), fertiliser (-106.2 points), exploration and production (-69.1 points), and technology (-67.9 points).
The stocks of a total of 326 companies were traded during the day, out of which 55 were in the green, 253 red, and 18 remain unchanged.