The Pakistani rupee reversed losses against the US Dollar during intraday trade today after opening trade at 287.45 in the interbank market, initially pushing higher by over Rs. 3 in a matter of hours.
The Pakistani rupee was bullish earlier today with the interbank rate rising as high as 284.25 and staying at that level. However, open market rates across multiple currency counters (undocumented) still remained above 300 to as high as 308 while a few channels managed 310.
A few documented channels managed as high as 295 against the greenback.
At today’s close, the PKR appreciated by 0.06 percent and closed at 287.19 after gaining 18 paisas today.
PKR gains defy current macro trends and weren’t welcomed by most traders who are growing suspicious of market manipulation and restricted info on damages caused by import controls. “Import controls have resulted in an interbank market surplus/balance. And it appears that the SBP is not aiming to create reserves by draining this excess supply. They instead transferred some retail payments to this wholesale sector which is temporary. Expect to see more losses next week,” one of them commented.
Another trader said, “There is confluence in both open and interbank rates. Furthermore, Eid-related remittances might be playing a big role here. The penalty, however, is the value of FX reserves which has continued to decline and become dependent on rollovers”.
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 18 paisas against the dollar today.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost Rs. 1.40 against the Canadian Dollar (CAD), Rs. 1.67 against the Australian Dollar (AUD), Rs. 3.02 against the Euro (EUR), and Rs. 3.57 against the Pound Sterling (GBP).
Conversely, it gained four paisas against the UAE Dirham (AED) and five paisas against the Saudi Riyal (SAR) in today’s interbank currency market.
Correct the spelling of week to weak