Rupee Roars Higher Against US Dollar As IMF and Saudi News Pumps Markets

The Pakistani Rupee (PKR) strengthened against the US Dollar (USD) and posted big gains during intraday trade today.

It appreciated by 0.71 percent against the USD and closed at Rs. 213.98 after gaining Rs. 1.51 in the interbank market today. The local unit quoted an intra-day high of Rs. 211.25 against the USD during today’s open market session.

The local unit had gained over Rs. 4 against the greenback and was trading at Rs. 211.25 in the open market at 10:58 AM. By midday, the greenback continued to trade between 212-216 against the rupee. After 2 PM, the local unit was trading between 214-216 against the top foreign currency before interbank close.

The rupee closed in green against the dollar for the tenth consecutive day today as markets continued to post more gains in the new week as a result of the International Monetary Fund’s (IMF) “nod” last week for more help from more rich and developed Muslim countries like Saudi Arabia.

Sources told ProPakistani that Saudi Arabia seeks to renew the $3 billion assistance to Pakistan in the form of safe deposits till December 2023. The agreement to expand safe deposits between Pakistan and Saudi Arabia will be finalized soon, with additional inflows of $100 million in the shape of oil imports per month also expected.

Market players suggest the local unit remains on a path of positive growth throughout this month. Some say the dollar’s actual price is between 180-200 but is artificially being kept higher to help manage issues faced by the cash-strapped South Asian economy.

It is also expected that the rumored on-site visit of the Financial Action Task Force (FATF) scheduled for this month may put further support behind the PKR if the country is removed from the grey list after confirming all pre-conditions.

Globally, oil prices slid by more than $3 on Monday and once again fell below $95 on concerns over demand in China, the world’s biggest crude importer, and ahead of Iran’s response to a nuclear deal dialogue which could raise the country’s oil exports.

Brent crude was down by 4.62 percent at $93.62 per barrel, while the US West Texas Intermediate (WTI) fell and went down by 4.65 percent to settle at $87.81 per barrel.

The PKR reported significant gains against the other major currencies in the interbank market today. It gained 38 paisas against the Saudi Riyal (SAR), 41 paisas against UAE Dirham (AED), Rs. 2.31 against the Australian Dollar (AUD), Rs. 2.49 against the Canadian Dollar (CAD), and Rs. 3.30 against the Pound Sterling (GBP).

Moreover, it gained Rs. 2.84 against the Euro (EUR) in today’s interbank currency market.

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