Rupee Keeps Getting Stronger, Closes Four Months Highest Against Dollar

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.

      • doller strong nahi, woh to apni satah per hi hai, magar hamari govt zyada currency print ker rahi hai, zyada imf se loan le ker or dunya se bheek ley or mang ker apney bank bhar rahi hai, un ke liey country important nahi $ bank balance important hai

  • Dear please see the Dollar against Other Currencies then only you will be able to understand the Pattern if PKR increasing or USD dropping

    • Nice point brought up. The US dollar could collapse by the end of 2021 and the economy can expect a more than 50% chance of a double-dip recession.

    • us elections are not beneficial for muslim word, specialy Pakistan, every new us govt. worsen the policy against pakistan and soften for india, it’s time for pakistani muslim that they have no their own approach in any field of technology, even we are an atomic power, we have not yet recover our electricity and energy matters,

  • Dollar is getting weaker that’s why ruppee appreciated, everything said in this article as reasons for appreciation are crap. In the coming weeks the ruppee will depreciate again as dollar index climbs back up before another decline.

  • close