The Pakistani Rupee (PKR) continues its recovery against the US dollar as the USD closed at the lowest levels of FY21.
With a fresh appreciation of 6 paisas today, the Pakistani Rupee has strengthened by a cumulative Rs. 4.08 in the last few months (June 30th to October 7) to Rs. 163.97 against the greenback in the inter-bank market, according to Capital Stake.
The rupee, which was closed at 168.0506/USD on June 30th has gained Rs. 4.08. However, On a year to day basis, it is still down 5.89%.
PKR traded within a very narrow range of 25 paisas per USD showing an intra-day high bid of 164.15 and an intra-day low offer of 163.95.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities while commenting on the Rupee said,
I see currency stabilising around Rs. 165 only. A Rs. 4.5 appreciation is a good enough confidence booster to the economy. However, sharp uptick in imports in September – and likely to continue – may create Current Account imbalances after a few months. Further appreciation of currency may reverse pretty soon. Hold it still.
Yaqoob Abubakar from Tresmark – an application that tracks financial markets – said that the rupee is appreciating for the past two weeks on the account of inflows in the foreign exchange (FX) market. Sources of inflows are Remittances, an enthusiastic response in Roshan Digital Account and Naya Pakistan Certificates, with approval loans from Asian Development Bank (ADB) and the World Bank (WB).
He added that lower international oil prices and multilateral aid supported the parity from the front.
The local currency is gaining due to slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the rupee. On the other hand, the exports are stable and improving, and the imports of commodities see a temporary drop from China where the week-long vacation has begun on the account of national days.