The Pakistani rupee (PKR) reversed losses against the US Dollar and posted massive gains during intraday trade today.
The Pakistani rupee was initially red during the early hours of intraday trade today with the interbank rate losing ~Rs. 1 to reach 288.625 by 11 AM. By 1:25 PM, it rebounded and moved to the 284 level.
At close, the PKR appreciated by 1.21 percent to close at 284.42 after gaining Rs. 3.43 during intraday trade today.
The rupee reported gains today after Saudi Arabia on Wednesday assured the International Monetary Fund (IMF) that it will provide a $2 billion loan to help Pakistan avoid default.
Now, the IMF has indicated it has received the assurance from Riyadh, according to Minister of State Aisha Ghaus Pasha. The agreement with the IMF still rests on a similar commitment from the United Arab Emirates for a $1 billion loan, she said.
The rupee is still down nearly Rs. 53 since January 2023. Since April 2022, it is down over Rs. 102 against the greenback. As per exchange rate movements witnessed today, the PKR has observed gains of over Rs. 3.4 against the dollar.
Money changers say today’s gains reflect market respite due to IMF clarity on external financing for Pakistan. Any further delays and uncertainties from either party may kill the deal and put the IMF bailout in indefinite limbo.
One trader, a bit relieved at today’s gains, said it would do well if the coalition government doesn’t try to block elections next month as any delays in this regard would make markets bearish for a long time.
The PKR was bullish against the other major currencies in the interbank market today. It gained 93 paisas against the Saudi Riyal (SAR), 93 paisas against the UAE Dirham (AED), Rs. 2.64 against the Canadian Dollar (CAD), Rs. 5.25 against the Pound Sterling (GBP), and Rs. 5.28 against the Euro (EUR).
Moreover, it gained Rs. 2.81 against the Australian Dollar (AUD) in today’s interbank currency market.
