The Pakistani rupee rebounded against the US Dollar during intraday trade today after opening trade at 277.35 in the interbank market.
At 11 AM, it was largely stable, rising to 277 after gaining a further 35 paisas against the greenback.
Later, it remained in the same range between 12:30 PM and 3:15 PM with the interbank rate tipped by traders today to close above yesterday’s drop.
Open market rates across multiple currency counters were stable in the 280-284 range.
At close, the PKR appreciated by 0.13 percent to close at 277.04 after gaining 37 paisas against the dollar today.
The informal exchange rate had recovered massively and at 11:30 AM rose to the 279 level, before falling to 280.
Today’s cash rate per dollar in Hundi stayed between 286 and 290, while many channels (undocumented) reported rates as high as 297.
Today’s gains came in tandem with seesaw projections earlier foreseen by traders. One trader told ProPakistani that volatility will continue to be decisive and more visible till July 12 when the IMF Executive Board meets to likely disburse an initial tranche of $1.1 billion to Pakistan.
“Then onwards, it could go either way. Traffic at cash counters has lowered but could rise with restrictions on LCs withdrawn. Expect this week’s trend to persist for the coming few months. Besides the IMF drawing rights, a couple extra billion dollars from KSA and UAE could position PKR below 270, but just barely,” he added.
The International Monetary Fund (IMF) Executive Board will meet on 12 July to approve the disbursal of an initial tranche of $1.1 billion for Pakistan under the lender’s $3 billion Standby Agreement (SBA) for the cash-strapped nation, well-informed sources told ProPakistani.
Pakistan has been assured of external financing to the tune of $6 billion in 2023-24, with $1.1 billion arriving this month under the Fund’s SBA arrangement.
Overall, the rupee is down nearly Rs. 51 since January 2023. Since April 2022, it is down over Rs. 99 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained 37 paisas against the dollar today.
The PKR was bullish against all of the other major currencies in the interbank market today. It gained 10 paisas against the UAE Dirham (AED), 10 paisas against the Saudi Riyal (SAR), and 12 paisas against the Pound Sterling (GBP).
Moreover, it gained 27 paisas against the Australian Dollar (AUD), 74 paisas against the Canadian Dollar (CAD), and Rs. 1.30 against the Euro (EUR) in today’s interbank currency market.
People should brace for dollar impact in coming weeks.