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Rupee Makes A Remarkable Recovery Against All Currencies After SBP Warning

The Pakistani rupee (PKR) appreciated against the US dollar (USD) on Thursday, recovering from September 15’s record low and gaining 94 paisas in the inter-bank market to close at Rs. 168.18.

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The rupee slid, on Wednesday, to Rs. 169.70 against the USD before recovering and closing at an all-time low of Rs. 169.12.

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On September 15, the SBP Deputy Governor appeared on a talk show, hosted by anchorperson Kamran Khan, and said that the central bank would take action to prevent panic in the forex market.

He said, “Our trade deficit has increased because the economic growth in the country is picking up, and along with that, international commodity prices are rising, impacting the import bill.”

“If some people start speculating, they must remember that they will be the losers at the end of the day,” he warned.

Ali Khizar, Head of Research at Business Recorder, tweeted that the warnings of State Bank of Pakistan (SBP) Deputy Governor Murtaza Syed against speculators had worked to alleviate some pressure on the PKR.

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Asad Rizvi, former Treasury Head Chase Manhattan Bank, also tweeted that the SBP Deputy Governor’s statement, wherein he had claimed that the central bank would not allow speculations, helped the rupee.

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While breaking its losing streak, the local currency also appreciated against other major currencies on September 16. It gained Rs. 1.98 against the Euro, Rs. 1.64 against the Pound Sterling (GBP), 44 paisas against the Canadian Dollar (CAD), and 93 paisas against the Australian Dollar (AUD). It also appreciated by 25 paisas against the Saudi Riyal (SAR) and by 26 paisas against the United Arab Emirates Dirham (AED).

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