286.7: PKR Pushes Higher Against US Dollar 3rd Day in a Row

The Pakistani rupee rose higher against the US Dollar during intraday trade today after opening trade at 286.95 in the interbank market, initially pushing higher by over Rs. 1.9 in the first few hours of the day.

The Pakistani rupee rose earlier today with the interbank rate rising as high as 285.04. Open market rates across multiple currency counters (undocumented) still remained above 300 to as high as 304 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 0.09 percent and closed at 286.73 after gaining 25 paisas today.

Today’s gains come due to an increase in foreign remittances from overseas Pakistanis as Eid Ul Azha approaches next week. “Trade is slow, which is bad, but remittances are coming in and increasing every day. Revised data for the outgoing month will reflect the increase. Expect further PKR recoveries in the coming days, but there’s a bigger danger of incurring damages post-Eid festivities,” one of them said.

The IMF fever has apparently died out and the exchange rate has adapted to other metrics having a direct impact on currency trade since the central bank’s move for settlement of dollar payments at interbank rates.

Pertinently, Prime Minister Shahbaz Sharif on Thursday met the Managing Director of the IMF Kristalina Georgieva on the sidelines of the Summit for a New Global Financial Pact being held in Paris, France. Sources suggest the government is still trying to get some cash out of the lender before Eid.

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 25 paisas against the dollar today.

The PKR was bullish against some of the other major currencies in the interbank market today. It gained six paisas against the Saudi Riyal (SAR) and six paisas against the UAE Dirham (AED).

Conversely, it lost 36 paisas against the Australian Dollar (AUD), 90 paisas against the Pound Sterling (GBP), Rs. 1.17 against the Canadian Dollar (CAD), and Rs. 1.53 against the Euro (EUR) in today’s interbank currency market.