The Pakistani Rupee appreciated today after slipping to its lowest against the US Dollar since August 2020. It gained 38 paisas against the Dollar to close at Rs. 167.25 today.
It registered an intra-day high of Rs. 167.75 against the US Dollar (USD), and an intra-day low of Rs. 167.30.
Yesterday, the Pakistani Rupee (PKR) depreciated by 0.24 percent against the USD and closed at Rs. 167.63, which was its lowest level since 28 August 2020.
It has been depreciating steadily over the past weeks on the back of a widening current account deficit and the political uncertainty in Afghanistan.
INTER BANK MARKET…
US Dollar is gradually inching up. The question is that what can stop the ongoing one sided rally to arrest #PKR’s fall.
I would keep a close watch on the OPEN MARKET RATE all over the country for direction. Financial market in Afghanistan is still BRITTLE.— Asad Rizvi (@asadcmka) September 8, 2021
The founder and CEO of Currency Market Associates, Asad Rizvi, tweeted that the financial market in Afghanistan is still brittle.
Lately, markets are jittery on the falling PKR/USD (reasons are in thread). Some are criticizing PKR volatility- well this graph shows that PKR volatility is less than many other currencies relative to USD. People pegging from recent PKR peak at 152 in May21 -not right 1/ pic.twitter.com/e9Y5GjR6Co
— Ali khizar (@AliKhizar) September 8, 2021
Economist Ali Khizar tweeted that “there is no need to panic” about the PKR’s recent depreciation, and that investors needed to become mature now that Pakistan had shifted to a market-based exchange rate system. The currency’s trends now depend on market sentiments and fundamentals, which, he said, would mature with time.
Khizar added that any positive news such as from the International Monetary Fund (IMF) or Afghanistan would buoy sentiments and drive the PKR’s value up in the short term.
“Don’t overthink on PKR slide, let the reality of healthy volatility sink in,” he concluded.
The PKR appreciated against other major currencies today. It gained 12 paisas against the Euro, 48 paisas against the Pound Sterling (GBP), 61 paisas against the Canadian Dollar (CAD), and 24 paisas against the Australian Dollar (AUD).
It also added 10 paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).
