The Pakistani rupee (PKR) gained further ground against the dollar during interbank trade on Thursday, going as high as 260 against the greenback.
At close, the rupee appreciated by 0.37 percent and suspended movement at 260.93 after gaining 97 paisas against the greenback.
The local unit was bullish against the dollar and opened trade at 261.24 in the open market. By midday, the greenback went lower against the rupee to around 260.45. After 1 PM, the local unit was largely stable against the top foreign currency before the interbank close.
The rupee gained further against the dollar today after President Arif Alvi approved the Finance (Supplemental) Bill, 2023, potentially bringing Pakistan closer to the staff-level agreement (SLA) with the International Monetary Fund (IMF) to avoid default.
With the new Bill, the authorities have now implemented increased taxes, reduced subsidies, and devalued the currency. More tax measures may be in play once financing through other external sources starts coming in.
The rupee is still down over Rs. 25 since its record-breaking single-day drop of Rs. 25 in the last week of January after the currency was finally ‘freed’ against the US dollar in the inter-bank market. As per market trends and fiscal developments observed today, the PKR has gained almost Rs. 1 today.
Money changers say the IMF deal would give investors and creditors confidence that Pakistan’s economy is now stabilizing and that the country has taken all necessary steps to protect their money. But some economists on market watch commented that the country needs more than just the ~$1.1 billion disbursal, possibly re-profiling of existing/incoming debt, in order to offer better gains to overseas investors.
The PKR was bullish against all of the other major currencies in the interbank market today. It gained 32 paisas against the Canadian Dollar (CAD), 26 paisas against the Saudi Riyal (SAR), 26 paisas against the UAE Dirham (AED), Rs. 2.04 against the Euro (EUR), and 51 paisas against the Australian Dollar (AUD).
Moreover, it gained Rs. 2.26 against the Pound Sterling (GBP) in today’s interbank currency market.
