The Pakistani rupee (PKR) reversed losses against the US Dollar and posted big gains during intraday trade today.
The Pakistani rupee was all green during the early hours of intraday trade today with the interbank rate gaining over Rs. 5 to reach 277 by 11 AM. By 11:25 AM, it jumped to 275 and stayed at this level.
At close, the rupee appreciated by 0.54 percent and suspended movement at 280.77 after gaining Rs. 1.52 against the greenback.
The rupee reported gains today, putting an end to another dramatic week of broken politics and an uncertain fiscal environment. Gains were substantial as the exchange rate rebounded following clarity on Pakistan’s talks with the International Monetary Fund (IMF).
More importantly, the rupee was reinforced over news that foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $487 million, clocking in at $4.3 billion as of March 3, , on the back of another loan from China,
The rupee is down over Rs. 48 since its record-breaking single-day drop of Rs. 25 in the last week of January and has since then played in mostly red due to immense economic pressure. As per exchange rate movements witnessed today, the PKR has gained over Rs. 1.5 today, noting an uptick from yesterday’s plunge of 282 against the USD.
Money changers say markets are losing confidence in the IMF deal as uncertainty ensures after two minutes of clarity. Today’s reversal comes after traders were able to generate import/export orders for cargo already booked or previously stranded at ports. Exporters exchanged revenue at currency counters as profits earned after completing a few of their many pending consignments on delay.
The US State Department has urged Pakistan to continue working with the International Monetary Fund (IMF), especially on reforms that will improve Pakistan’s business environment.
It is pertinent to mention here that despite talks with IMF stretching for over a month, Pakistan is yet to secure a staff-level agreement (SLA) with the IMF.
Globally, the dollar paused its climb on Friday after a rise in jobless claims in the United States suggested possibly easing labor market conditions and restrained expectations of another interest rate hike.
The PKR was bullish against most of the other major currencies in the interbank market today. It gained 30 paisas against the Euro (EUR), 40 paisas against the Saudi Riyal (SAR), 41 paisas against the UAE Dirham (AED), Rs. 1.65 against the Australian Dollar (AUD), and Rs. 1.80 against the Canadian Dollar (CAD).
Conversely, it lost Rs. 1.22 against the Pound Sterling (GBP) in today’s interbank currency market.