The Pakistani Rupee (PKR) rose a little further against the US Dollar (USD) and recorded more gains during intraday trade today.
It appreciated by 0.04 percent against the USD and closed at Rs. 213.90 after gaining eight paisas in the interbank market today. The local unit quoted an intra-day high of Rs. 211.75 against the USD during today’s open market session.
The local unit remained stable against the greenback and was trading at Rs. 211.25 in the open market at 10:28 AM. By midday, the greenback continued to trade between 211-213 against the rupee. After 2 PM, the local unit was trading on the 213 level against the top foreign currency before the interbank close.
The rupee closed in green against the dollar for the eleventh consecutive day today despite the government’s decision to increase the price of petrol despite a decrease in oil prices in the international market.
Overall, the local unit has continued to defy bearish sentiments and was named the best performing currency in the world in August, with an 11 percent gain versus the US dollar, the most among all currencies. With this, the PKR has recovered a massive Rs. 26.08 in the last 11 trading sessions since hitting its all-time low of Rs. 239.94 in end-July.
Commenting on the development on Twitter, Topline CEO Mohammad Sohail tweeted, “After months of economic and political uncertainties, happy to see #Pakistan Rupee and Stock Market being Top Performers so far in August beating all other countries based on Bloomberg data. PKR is up 11% while KSE100 Index up 22% in US$”.
After months of economic and political uncertainties, happy to see #Pakistan Rupee and Stock Market being Top Performers so far in August beating all other countries based on Bloomberg data. PKR is up 11% while KSE100 Index up 22% in US$ @MiftahIsmail @StateBank_Pak pic.twitter.com/1cX1tWp6PN
— Mohammed Sohail (@sohailkarachi) August 15, 2022
The rupee’s recovery can also be attributed to Saudi Arabia’s rollover of a $3 billion soft credit. The loan from the kingdom’s quota would be different from the restart of Pakistan’s $7 billion IMF bailout. On August 29, 2022, the IMF executive board is expected to authorize the disbursement of the next tranche of $1.17 billion.
Globally, oil prices continued to remain bearish and stayed below $95 as disappointing economic data from top crude importer China resurrected concerns of a global recession, and the world contemplated the expected results of the talks on a reviving deal that could allow more Iranian oil exports in the near term.
Brent crude was down by 0.88 percent at $94.26 per barrel, while the US West Texas Intermediate (WTI) fell and went down by 0.54 percent to settle at $89.93 per barrel.
The PKR was stable against the other major currencies in the interbank market today. It held out against the Saudi Riyal (SAR), gained two paisas against UAE Dirham (AED), 84 paisas against the Canadian Dollar (CAD), Rs. 1.10 against the Australian Dollar (AUD), and Rs. 1.22 against the Pound Sterling (GBP).
Moreover, it gained Rs. 1.71 against the Euro (EUR) in today’s interbank currency market.