The Pakistani rupee (PKR) reverses losses against the US Dollar and posted big gains during intraday trade today.
The Pakistani rupee was all green throughout intraday trade today with the interbank rate gaining ~Rs. 2 to reach 286.27 by 11 AM. By 1:25 PM, it moderated movement and stayed at the 286 level.
At close, the PKR appreciated by 0.63 percent to close at 286.62 after gaining Rs. 1.81 during intraday trade today.
The rupee reported gains today and defied expectations of another big drop despite the International Monetary Fund’s (IMF) downward revision in the GDP growth rate projection for Pakistan from 2 percent to 0.5 percent for the current fiscal year (FY23).
The rupee is down nearly Rs. 56 since January 2023. Since April 2022, it is down over Rs. 104 against the greenback. As per exchange rate movements witnessed today, the PKR has observed gains of over Rs. 1.8 against the dollar.
Money changers say today’s gains are a breather partially backed by developments that Pakistan is expecting confirmation from the United Arab Emirates of a $1 billion funding guarantee this week which would pave way for an early signing of its bailout agreement with the IMF.
An expert later reached out and told ProPakistani that external intervention can help the PKR even further. The right economic reforms/policies should be put in place while efforts must be made to urgently facilitate reprofiling the state debt to longer-term tenures to reduce the burden on the reserves.
The PKR was bullish against the other major currencies in the interbank market today. It gained 47 paisas against the Saudi Riyal (SAR), 49 paisas against the UAE Dirham (AED), 90 paisas against the Canadian Dollar (CAD), Rs. 1.28 against the Euro (EUR), and Rs. 2.44 against the Pound Sterling (GBP).
Moreover, it gained Rs. 1.69 against the Australian Dollar (AUD) in today’s interbank currency market.
