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Rupee Makes Gains Against All Currencies After Saudi Deposit

The Pakistani Rupee (PKR) posted gains against the US Dollar (USD) and appreciated by 29 paisas against the greenback in the interbank market today. It hit an intra-day high of Rs. 175.70 against the Dollar during today’s open market session.

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The local currency appreciated by 0.20 percent against the USD and closed at Rs. 176.48 today after it lost 34 paisas and closed at Rs. 176.77 in the interbank market on Friday, 3 December.

The Rupee recovered against the Dollar today on the back of developments over the weekend that saw Saudi Arabia deposit $3 billion in the State Bank of Pakistan (SBP) under its support package agreement, which was signed between the two countries almost two months ago.

The deposit is anticipated to stabilize the local currency for some time, while also bolstering the country’s foreign exchange reserves. The PKR is projected to recover partially, according to market speculations, since the deposit will strengthen market sentiment.

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, discussed today’s interbank tweeted explaining how the news of the Saudi deposit and the Advisor on Finance remarks might have caused today’s growth. He said, “Saudi $3bn DEPO received. Shaukat Tareen says good news. This could be [a] hint about getting [the] IMF package. We are always takers. Sadly no GOVT has ever given a repayment plan. ECO Stability will depend on performance & outflows. [A] flattering economy cannot survive on sweeteners”.

The PKR reversed losses against other major currencies as well and posted gains in the interbank currency market today.

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It posted big gains of Rs. 1.12 against the Pound Sterling (GBP), five paisas against the Chinese Yuan (CNY), and seven paisas against both the UAE Dirham (AED) and Saudi Riyal (SAR) in today’s interbank currency market.

The Rupee finally broke its harrowing run against the Euro (EUR) and gained 55 paisas in the interbank currency market today, closing at Rs. 199.5 against the eurozone currency.

Besides the above, the local currency reversed losses against the Australian Dollar (AUD) and Canadian Dollar (CAD), posting respective gains of 91 paisas and 17 paisas in the interbank current market today.

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