Rupee Breaks Losing Streak Against the US Dollar On the Back of Good News

The Pakistani Rupee (PKR) finally recovered against the US Dollar (USD) and appreciated 43 paisas against the latter in the inter-bank market today. It hit an intra-day high of Rs. 174.20 against the USD during today’s open market session.

The PKR appreciated by 0.25 percent against the USD and closed at Rs. 175.29 today after it posted losses of Rs. 1.54 and closed at Rs. 175.73 in the inter-bank market on Friday, 12 November.

Today’s gains come on the back of news that Pakistan received remittance inflows that surged to above $10 billion between July and October 2021. Inflows during the first four months of FY22 have mainly been sourced from Saudi Arabia ($2.7 billion), UAE ($2.0 billion), the UK ($1.5 billion), and the USA ($1.1 billion).

Although the local currency has reported gains in today’s market, the speculation in the forex market is the biggest reason behind its harrowing freefall, claimed the Advisor of Finance, Shaukat Tarin. While discussing the Rupee forecast with reporters, he explained that it has devalued by more than Rs. 10 due to speculative trading, and that its real value should be between Rs. 165-167 against the dollar.

Regarding the PKR’s interbank performance earlier today during the trading hours, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said, “On Friday to show solidarity with PAK CRICKET TEAM #PKR traded @ 176 all-time high. While Remittances has hit $ 2.5b. Rupee could hold its breath”.

 

He added, “I/B Market will Focus will be on Hike of CRR to 6%. Roughly. Rs 175 billion is expected to be drained out of the system”.

The PKR maintained its blanket performance against most of the other major currencies as well and posted blanket gains in the inter-bank currency market today.

It gained 48 paisas against the Euro (EUR), six paisas against the Malaysian Ringgit (MYR), and one paisa against the Chinese Yuan (CNY).

It also posted gains of 11 paisas against both the UAE Dirham (AED) and Saudi Riyal (SAR) in today’s inter-bank currency market.

Besides this, the PKR posted blanket losses of nine paisas against the Canadian Dollar (CAD), two paisas against the Pound Sterling (GBP), and 57 paisas against the Australian Dollar (AUD).



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