The Pakistani rupee reversed its 4-day losing streak against the US Dollar during intraday trade today after opening trade at 286.7 in the interbank market.
The Pakistani rupee was initially bearish in the first few hours with the interbank rate falling as low as 287.1 and staying at that level. Open market rates across multiple currency counters remained above 300 and multiple counters still managed rates as high as 309 while a few channels managed 311.
At today’s close, the PKR appreciated by 0.027 percent and closed at 286.8 after gaining seven paisas today.
PKR gains were still bleak with traders awaiting news on the upcoming 2023-24 budget. One trader told ProPakistani that uncertainty over Pakistan’s progress with the International Monetary Fund (IMF) parried gains, with tomorrow’s reaction to budget 2023-24 expected to impact the exchange rate for months to come.
Pertinently, Pakistan must satisfy the IMF on the proper functioning of the Foreign exchange market, a federal budget consistent with the lender’s objectives, and securing credible financing commitments to close the $6 billion gap in order to book its agenda for approval this month.
The lender’s resident representative for Pakistan, Esther Perez Ruiz, told Reuters on Thursday that there was time for just one more IMF Board review before the $6.5 billion Extended Fund Facility (EFF) expires on June 30.
On the subject of IMF’s expectations for budget 2023-24, the Fund’s representative said, “The focus of discussions over the FY24 budget is to balance the need to strengthen debt sustainability prospects while creating space to increase social spending”.
Overall, the rupee is down nearly Rs. 61 since January 2023. Since April 2022, it is down over Rs. 109 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained seven paisas against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 22 paisas against the Australian Dollar (AUD), Rs. 1.12 against the Euro (EUR), Rs. 1.19 against the Canadian Dollar (CAD), and Rs. 1.73 against the Pound Sterling (GBP).
Conversely, it gained two paisas against the Saudi Riyal (SAR) and two paisas against the UAE Dirham (AED) in today’s interbank currency market.
