The Pakistani rupee gained further ground against the US Dollar during intraday trade today after opening trade at 287.45 in the interbank market, initially pushing higher by 35 paisas.
The Pakistani rupee recovered earlier today with the interbank rate rising as high as 286.87. Open market rates across multiple currency counters (undocumented) still remained above 300 to as high as 306 while a few channels managed 309.
A few documented channels managed as high as 296 against the greenback.
At today’s close, the PKR appreciated by 0.08 percent and closed at 286.98 after gaining 24 paisas today.
Today’s gains come with most traders suggesting ex-pat remittances and reduced demand for USD as the big factors, while a marginal drop in informal trade eased losses. “The rupee needs consistent growth and today’s 2nd consecutive gain is a good sign. Most factors aren’t helping the exchange rate but incoming remittances from overseas Pakistanis are starting to bear fruit. Numbers post-Eid Ul Azha will offer some clarity in this regard,” one of them commented.
Another trader said, “Authorities are still convinced that the International Monetary Fund would come to Pakistan’s aid in the last few days of this turbulent fiscal year. Efforts are underway but unsupported priorities may dent progress. There’s hope the coming days will see more growth with foreign remittances expected to play a big role in propelling the PKR to the 285 level. There’s little chance for such a big jump this month, given prior projections, but a sentiment-driven market like ours is capable of achieving such a feat”.
Pertinently, Finance Minister Ishaq Dar Wednesday requested US Ambassador Donald Blome to play his part in reviving the IMF bailout. Dar’s efforts may prove insufficient, with the lender’s executive agenda for June not including Pakistan as an item for deliberation.
Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 108 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained 24 paisas against the dollar today.
The PKR was bullish against all of the other major currencies in the interbank market today. It gained five paisas against the Saudi Riyal (SAR), six paisas against the UAE Dirham (AED), 42 paisas against the Canadian Dollar (CAD), 93 paisas against the Australian Dollar (AUD), and Rs. 2.06 against the Pound Sterling (GBP).
Moreover, it gained 34 paisas against the Euro (EUR) in today’s interbank currency market.
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