The Pakistani Rupee finally appreciated against the US Dollar in the international currency market after weeks of deterioration.
The Rupee fell to its lowest level in four months against the US Dollar (USD) this week and breached the level of Rs. 158 on Tuesday. Today, after several consecutive days of posting heavy losses, PKR turned the tide and posted significant improvement.
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The PKR appreciated 85 paisas against the greenback in the interbank currency market on Thursday (24 June), closing at Rs. 157.67 against the USD, as compared to Rs. 158.53 on Wednesday (23 June).
The PKR has been posting losses continuously for five weeks but with sporadic improvements. Today was one of those unusual days for PKR.
Higher import payments coupled with the expected delay in the sixth review of the International Monetary Fund’s (IMF) $6 billion loan program have been weighing down the rupee in the international currency market.
Former Treasury Head at Chase Manhattan Bank, Asad Rizvi, said about today’s rupee movement, “Yesterday SBP invited few Bank Treasurers that are actively involved in the market and told them not to panic, as FX position is under control.”
He said that the banks were asked to use their NOP limit more effectively, adding, “This should help to stabilize the market suggesting strong Rupee opening.”
A. A. H. Soomro, the Managing Director of Khadim Ali Shah Bukhari Securities, said earlier in the day, “PKR is hovering [around] Rs. 158/159, nearly kissing the Rs. 160 again. The trade deficit stemming from economic reopening is taking its toll, naturally. But one-way currency movement is not the answer.”
He added, “You can’t afford to derail the confidence. Keep it steady near Rs. 160-ish.”
The PKR also saw an excellent day against other major currencies as well.
It appreciated by Rs. 1.08 against the Euro, by nearly 93 paisas against the Pound Sterling (GBP), by 40 paisas against the Australian Dollar (AUD), and nearly by 70 paisas against the Canadian Dollar (CAD).
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The PKR also posted improvement against the UAE Dirham (AED) and the Saudi Riyal (SAR), and improved by 23 paisas and 22.8 paisas, respectively.
