The Pakistani rupee (PKR) slowed its ascent against the US Dollar but posted gains during intraday trade today.
The Pakistani rupee was stable during the early hours of intraday trade today with the interbank rate gaining Rs. 2 to reach 275 by 11 AM. By 11:25 AM, it had gained over Rs. 3 to top 274.
At close, the rupee appreciated by 0.02 percent and suspended movement at 277.87 after gaining 5 paisas against the greenback.
The rupee reported gains for the third day in a row today. Gains were marginal as the exchange rate struggled to build on Monday’s momentum following clarity on Pakistan’s talks with the International Monetary Fund (IMF).
The rupee is down almost Rs. 45 since its record-breaking single-day drop of Rs. 25 in the last week of January and has since then gradually parried small losses despite economic pressure. As per exchange rate movements witnessed today, the PKR has gained marginally today, maintaining its recovery from last week’s plunge of 285.09 against the USD.
Money changers say it would help if something positive comes out this week regarding Pakistan’s dialogue with the IMF. More uncertainty will only bring fundamentals down and discourage exporters.
Pertinently, the rupee uptick may persist for longer if China continues to sympathize with the South Asian country. Pakistan has communicated to the lender that it has asked China to roll over $2 billion in SAFE (State Administration of Foreign Exchange) deposits for one year. The government has already made the request to the Chinese side for granting rollover of $2 billion SAFE deposits, which is going to mature by end of the ongoing month
The PKR was green against some of the other major currencies in the interbank market today. It gained one paisa against the Saudi Riyal (SAR), one paisa against the UAE Dirham (AED), 13 paisas against the Canadian Dollar (CAD), and 49 paisas against the Australian Dollar (AUD).
Conversely, it lost 75 paisas against the Pound Sterling (GBP) and Rs. 1.60 against the Euro (EUR) in today’s interbank currency market.
With that low reserves how it is gaining still a mystery. There is no doubt finance minister still trying to control it and creating the gap. In open market people easily getting 290+ rate why people prefer interbank?