The Pakistani rupee (PKR) rose further against the US Dollar and posted big gains for the second consecutive day during intraday trade today.
The Pakistani rupee was all green throughout intraday trade today with the interbank rate gaining ~Rs. 7 to reach 281.25 by 11 AM. By 1:25 PM, it moderated movement and dropped down to 287.95 before recovering slightly and staying at the 284-285 level.
At close, the PKR appreciated by 0.60 percent to close at 284.9 after gaining Rs. 1.71 during intraday trade today.
The rupee reported gains today after International Monetary Fund’s (IMF) Director for Middle East and Central Asia Department (MCD) Jihad Azour Wednesday expressed confidence that the staff-level agreement (SLA) with Pakistan will be signed soon followed by the IMF Board’s approval.
The director’s remarks came during a meeting with Finance Minister Ishaq Dar who attended IMF/World Bank Spring meetings through Zoom from Islamabad, according to a press handout issued by the government.
Azour hoped that Pakistan would continue towards its progress on the reforms in various sectors and complete the IMF program in time and the IMF will play a positive role in bringing economic stability to Pakistan.
The rupee is still down nearly Rs. 54 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. 1.7 against the dollar.
Bulls took control of the exchange rate movement after investors were assured that Pakistan’s debt burden will be starting decreasing this year.
According to the IMF report “Fiscal Monitor, on the Path to policy normalization,” the net debt for Pakistan is projected to decrease to 68.7 percent of the GDP in 2023 against 69.5 percent in 2022. The net debt is projected to further decline to 65 percent in 2024.
The PKR was bullish against some of the other major currencies in the interbank market today. It gained 45 paisas against the Saudi Riyal (SAR), 46 paisas against the UAE Dirham (AED), and 45 paisas against the Canadian Dollar (CAD).
Conversely, it lost 14 paisas against the Pound Sterling (GBP), 32 paisas against the Euro (EUR), and 87 paisas against the Australian Dollar (AUD) in today’s interbank currency market.