The Pakistani rupee (PKR) gained further ground and posted gains against the US Dollar today.
The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining ~Rs. 5 to reach 279.17 by 11 AM. By 1:25 PM, it dropped to 283-284 and stayed at this level.
At close, the PKR appreciated by 0.15 percent and suspended movement at 283.47 after gaining 42 paisas today.
The rupee was all green today after market sentiments improved with cash movers looking forward to the long weekend after tumultuous few weeks that rocked market fundamentals to their core.
Currency dealers operating across mostly Karachi counters said last few days of the Holy Month of Ramazan observe quick greenback inflows from overseas Pakistanis which has helped the local unit recover more ground. While political noise and economic shortfalls have played a part in putting a lot of pressure on the rupee, one trader said the PKR is playing with short spots before heading toward 300 against the USD. Besides the projection, he hopes the currency halts movement at 290 for at least 3 months until further clarity appears across all walks of fiscal and macroeconomic management.
Pertinently, 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 was bearish on Thursday. The US Dollar has suffered a stunning downfall in the past few weeks as a reserve currency. Exceptional actions taken by Russia, India, China, and some other nations to skip the greenback in exchange for pushing their own currencies have put a lot of strain on the dollar and with that effect, the US economy.
Pertinently, the rupee is down nearly Rs. 53 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 all of the other major currencies in the interbank market today. It gained eight paisas against the Saudi Riyal (SAR), 12 paisas against the UAE Dirham (AED), 54 paisas against the Australian Dollar (AUD), and Rs. 1.34 against the Canadian Dollar (CAD).
Moreover, it gained 82 paisas against the Euro (EUR), and Rs. 1.71 against the Pound Sterling (GBP) in today’s interbank currency market.
