The Pakistani rupee (PKR) halted movement and was stable against the US Dollar today.
The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining ~Rs. 1 to reach 283.1 by 11 AM. By 1:25 PM, it dropped to 284-32 and stayed at this level.
At close, the PKR recovered slightly and suspended movement at 283.90 today.
The rupee was stable today after market sentiments stabilized momentarily with nothing definitive happening throughout the intraday. But traders were skeptical of the domestic cashflow situation and warned banking institutions to unblock counters and release cash without delay otherwise exporters wouldn’t be able to get their money out on time before Eid.
A currency trader who operates near the Torkham border said smuggling is still a prevalent issue and only its stoppage would help curb interbank declines in the coming months.
Market participants are waiting for the International Monetary Fund (IMF) Extended Fund Facility (EFF) to resume operations, which has been stalled since last year. Moreover, an increase in remittances from workers and the decline in import payments have reduced demand for US dollars.
Globally, the dollar stabilized on Wednesday after swinging with bond prices as investors looked for hints about the path of interest rates in US economic indicators, and Federal Reserve commentary, amongst others.
Pertinently, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has held out against the dollar.
The PKR was green against some of the other major currencies in the interbank market today. It held out against the UAE Dirham (AED), gained one paisa against the Saudi Riyal (SAR), 11 paisas against the Australian Dollar (AUD), and 43 paisas against the Canadian Dollar (CAD).
Conversely, it lost 27 paisas against the Euro (EUR), and Rs. 1.45 against the Pound Sterling (GBP) in today’s interbank currency market.
