Rupee Rebounds Against Major Currencies

The Pakistani Rupee (PKR) reversed its losses against the US Dollar (USD) and persevered against the greenback despite hitting an intra-day high of Rs. 177.1 against the USD during today’s open market session.

It halted movements against the USD and closed at Rs. 176.98 today after losing 25 paisas and closing at 176.98 in the interbank market on Wednesday, 26 January.

The rupee ceased its losing streak against the dollar after the International Monetary Fund (IMF) projected global growth yesterday to downshift from 5.9 percent in 2021 to 4.4 percent this year.

The global lender’s recent World Economic Outlook (WEO) report projected the global slowdown due to the “impediments” created by the Omicron variant, although they are likely to subside in the second quarter of the ongoing calendar year.

On the flip side, macroeconomic researcher Gonzalo Varela cited the World Bank’s findings that even though the global supply chain was disrupted during 2021, the year was particularly good for Pakistan.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, commented on Twitter that the PKR fell to a nearly 20-day low on “jitters over [the] shift of IMF meeting dates”. He stated that the deadline that was pushed from 12 January to 28 January has now been set for 2 February.

Meanwhile, payment pressure endure due to the economy’s heavy reliance on foreign borrowing, and Rizvi emphasized that the passage of the SBP Amendment Bill is crucial.

The PKR also reversed its losses against the other major currencies and reported gains in the interbank currency market today. It gained Rs. 1.53 against the Australian Dollar (AUD), Rs. 1.28 against the Canadian Dollar (CAD), Rs. 1.67 against the Pound Sterling (GBP), and Rs. 1.62 against the Euro (EUR).

Moreover, it gained one paisa against the Saudi Riyal (SAR) and held out against the UAE Dirham (AED) in today’s interbank currency market.