The tide finally turned against the US Dollar (USD) for the Pakistani Rupee (PKR) on Wednesday as it posted an improvement in the interbank market.
The rupee closed at Rs. 155.69 against the US Dollar at the end of the trading day today (Wednesday, 9 June), up by nine paisas as compared to Rs. 155.78 to the USD yesterday (Tuesday, 8 June).
On the first two days of the current week, the PKR had posted significant losses of 70 paisas and 47 paisas, respectively. In the past month – since May 7 – the PKR had depreciated by Rs. 3.11 against the USD, and also crossed the boundary of the Rs. 155 exchange rate on Monday for the first time since 25 March 2021.
Today, however, the PKR showed some stability in the interbank currency market. Regarding the recent downfall of the PKR, the Managing Director of Khadim Ali Shah Bukhari Securities, A. A. H. Soomro, told ProPakistani that the “pressure on the currency is stemming as the economy opens up, imports grow faster than the exports & REER at 103”.
He said that with the high prices of oil, the TERF imports, the economic resumption, and the food one-offs, the trade deficit is nearing the Red Zone. “However, remittances and RDAs are solid. Hence, maintaining below Rs. 160 in the foreseeable future is likely amid political pressures,” he explained.
Today’s improvement may also have been steered by the upward revision of the growth projections according to the World Bank’s latest flagship report.
The PKR also showed strength against most other major currencies in the interbank currency market today after blanket losses yesterday.
It lost five paisas against the Euro and 43 paisas against the Pound Sterling (GBP); but posted gains of four paisas against the Australian Dollar (AUD), and of 15 paisas against the Canadian Dollar (CAD).
Additionally, the PKR turned the tide against the UAE Dirham (AED) and the Saudi Riyal (SAR) and posted gains of two paisas against each.