The Pakistani Rupee (PKR) appreciated against the US Dollar (USD) in the interbank market today. It gained 24 paisas against the greenback after hitting an intra-day high of Rs. 176.64 against the latter during today’s open market session.
It appreciated by 0.14 percent against the USD and closed at Rs. 176.67 today after losing 18 paisas and closing at 176.92 in the interbank market on Thursday, 6 January.
According to research published by Capital Stake, the rupee has gained 0.14 percent on a day-to-day basis and depreciated in value by 0.09 percent on a week-to-date (WTD) basis.
The local unit bounced back against the USD on the back of reports that the government plans to push the highly contentious Finance Supplementary Bill, 2021, for approval at a session of the National Assembly on Monday, 10 January. It is worth mentioning that the Finance Bill and the State Bank of Pakistan (Amendment) Bill, 2021, must be okayed for Pakistan’s sixth review of the $6 billion Extended Fund Facility (EFF) to be approved by the IMF’s Executive Board next week.
However, the near-term outlook still looks uncertain as various factors continue to impede economic growth. For example, Pakistan’s liquid foreign reserves had an outflow of $255 million in the week that ended on 31 December 2021, according to the central bank. The country’s total liquid foreign exchange reserves went down to $24.02 billion while the SBP’s reserves fell by $169 million to $17.686 billion.
Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted, “It’s a tough start to the year. SBP RESERVES are down four times in a row to $ 17.69bn. OIL hovering above $ 80 & trade deficit at [an] all-time high is causing uneasiness. Since borrowing is the only option after remittances, as FDI is not picking up, [it is surely a] hard time for PKR”.
INTER BANK
It’s a tough start to the year. SBP RESERVES are down four times in a row to $ 17.69bn. OIL hovering above $ 80 & trade deficit at all time high is causing uneasiness. Since borrowing is the only option after remittances, as FDI is not picking up, hard time for #PKR pic.twitter.com/BMKmfkZqPd
— Asad Rizvi (@asadcmka) January 7, 2022
The PKR made a mixed showing of trends against other major currencies in the interbank currency market today. It posted losses of three paisas against the Euro (EUR), 16 paisas against the Pound Sterling (GBP), and 56 paisas against the Canadian Dollar (CAD).
On the contrary, it gained 31 paisas against the Australian Dollar (AUD), three paisas against the Saudi Riyal (SAR), and six paisas against the UAE Dirham (AED) in today’s interbank currency market.
