The Pakistani Rupee (PKR) reversed its winning streak against the US Dollar (USD) and posted losses in the interbank market today. It lost 26 paisas against the greenback despite hitting an intra-day high of Rs. 175.75 against the latter during today’s open market session.
It depreciated by 0.15 percent against the USD and closed at Rs. 176.18 today after gaining 14 paisas and closing at 175.92 in the interbank market on Monday, 17 January.
The rupee reported losses against the dollar today when markets opened in the US after the holiday for Martin Luther King Jr. Day yesterday. Despite most trends projecting nominal movements among major economic indicators, the PKR fell amid the usual fears of extremely volatile inflationary concerns. Moreover, subsequent to the country’s Real Effective Exchange Rate (REER) soaring to 98.5 in November 2021, domestic exports have become much more expensive and are piling more pressure on the local unit.
Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, explained on Twitter that higher inflation and trade data, together with November’s REER of 98.5436, suggest that data for December could be close to 100. While December’s remittances of $2.50 billion are in line with his ‘OUTLOOK 2022’ (BR) prediction of $30 billion, Rizvi said this could alleviate the pressure on the exchange unit. “I expect the PKR to gradually inch up until [the] IMF statement,” he added.
INTER BANK
With NOV REER 98.5436, higher inflation & trade numbers indicates DEC number could be close to 100. While DEC remittances at $2.50bn is in line of my forecast ‘OUTLOOK 2022’ (BR) for $30bn+ could ease pressure.I expect #PKR to gradually inch up until IMF announcement
— Asad Rizvi (@asadcmka) January 18, 2022
The PKR also reversed its winning run against other major currencies and reported losses in the interbank currency market today. It lost seven paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), and 36 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.
Conversely, it posted gains of 36 paisas against the Euro (EUR), 38 paisas against the Pound Sterling (GBP), and 25 paisas against the Australian Dollar (AUD).
