Pakistani Rupee has yet again shown upward movement in today’s interbank market rate as it closed with a gain of 35 paisas against the US Dollar. From PKR 159.81 per USD on November 4, the exchange rate went down to PKR 159.46 on November 5 (today), as per data released by the financial analytics platform Capital Stake.
However, the continued improvement of PKR’s exchange rate against the US Dollar might not be as strong an indication of strengthening Rupee as it is of deteriorating dollar. Since, the exchange rate of PKR worsened against Euro (EUR), Pound (GBP), Australian Dollar (AUD) as well as Canadian Dollar (CAD).
From November 4 to November 5, PKR lost 57 paisas to EUR, 64 paisas to GBP, Rs. 1.42 to AUD, and 79 paisas to CAD.
One of the reasons for PKR’s improvement against USD can be said to be the inflow of remittances in USD. Another positive factor are the measures taken by the State Bank of Pakistan (SBP) to encourage overseas investment in the country.
Improvement in exports, primarily led by the textile sector and partially assisted by the early loosening of lockdown restrictions, have also played its part in strengthening the rupee against the greenback.
The consistent inflows of foreign exchange in the country due to overseas’ remittances, investments through Roshan digital accounts, and export receipt maintained a favorable balance of supply and demand of the greenback in the local market are causing Rupee-USD parity to gain stability.