Dollar Drops Below 220 Against PKR As UAE News and IMF Stimulate Markets [Updated]

The Pakistani Rupee (PKR) continued to strengthen against the US Dollar (USD) and posted massive gains during intraday trade today for the seventh consecutive day.

The local unit had gained over Rs. 3 against the greenback and was trading at Rs. 220.25 in the open market at 10:30 AM. Despite today’s gains, the dollar is up by Rs. 33.66 (intraday) against the PKR.

By midday, the dollar fell by Rs. 5 to below 220 against the rupee for the first time in four weeks. At 12: 15 PM, the local unit was trading at 219 against the top foreign currency. It closed at 221.91 with more recovery expected as market sentiments realign.

Today’s intraday cue comes after the United Arab Emirates (UAE) last week announced its intention to invest $1 billion in Pakistani companies in various economic and investment sectors. The UAE and Pakistan are keen to continue cooperation in various fields, which include gas, energy infrastructure, renewable energy, health care, biotechnology, agricultural technology, logistics, digital communications, e-commerce, and financial services.

Other developments that are helping the PKR growth include the International Monetary Fund’s (IMF) board meeting expected later this month. It is expected that the agency will expedite Pakistan’s case and most likely approve the dispersal of $1.17 billion to the cash-strapped South Asian nation in the weeks ahead.

Other Currencies

The PKR reported big gains against the other major currencies in the interbank market today. It gained 58 paisas against UAE Dirham (AED), 59 paisas against the Saudi Riyal (SAR), Rs. 1.30 against the Australian Dollar (AUD), Rs. 1.63 against the Canadian Dollar (CAD), and Rs. 3.99 against the Pound Sterling (GBP).

Moreover, it gained Rs. 2.40 against the Euro (EUR) in today’s interbank currency market.