The Pakistani rupee rebounded against the US Dollar during intraday trade today after opening trade at 279.75 in the interbank market.
At 11 AM, it was initially bearish, falling as low as 283 after losing Rs. 3.2 against the greenback.
Later, it revived and lifted off to the 278-level between 12:30 PM and 3:15 PM with the interbank rate tipped by traders at the time to close higher than Monday’s close
Open market rates across multiple currency counters surged to the 288-293 range before reverting back to 285-290.
At close, the PKR appreciated by 0.44 percent to close at 278.57 after gaining Rs. 1.23 against the dollar today.
The informal exchange rate had fallen massively and at 11:30 AM dropped to the 291 level, before rising to 286.
Today’s cash rate per dollar in Hundi surged to the 289-298 band before back to 286-293, while many channels (undocumented) reported rates as high as 306.
Today’s gains come after the Kingdom of Saudi Arabia (KSA) deposited $2 billion in the State Bank of Pakistan’s (SBP) account.
This inflow offers a concrete possibility for the cash-strapped country to receive an important bailout from the International Monetary Fund (IMF) in the coming few days.
Pertinently, the inflows also reflect Pakistan’s improved external liquidity and funding conditions following its Staff-Level Agreement (SLA) with the IMF on a nine-month Stand-by Arrangement (SBA) in June.
Earlier, Fitch Ratings upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘CCC-‘. The agency said it expects the IMF SLA to be approved by the IMF board in July, catalyzing other funding and anchoring policies around parliamentary elections due by October. Nevertheless, program implementation and external funding risks remain due to a volatile political climate and large external financing requirements.
One trader told ProPakistani that the PKR recovered today after falling below dangerous levels due to big developments in the past two days. “Fitch and KSA disbursal touted big movements in the market channels. This, including tomorrow’s expectations of good news from the IMF Board meeting, helped the rupee recover some of its value. But again, regardless of the Fund’s decision on Pakistan’s bailout, the exchange rate will remain under tight handles due to liquidity forecasts until June 2024,” he stated.
Overall, the rupee is down nearly Rs. 52 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained Rs. 1.23 against the dollar today.
The PKR was bullish against most of the other major currencies in the interbank market today. It gained two paisas against the Australian Dollar (AUD), 32 paisas against the Saudi Riyal (SAR), 33 paisas against the UAE Dirham (AED), and 58 paisas against the Canadian Dollar (CAD)
Conversely, it lost 17 paisas against the Euro (EUR) and 50 paisas against the Pound Sterling (GBP) in today’s interbank currency market.
when people are getting 305 from hundi who will take hit of 25 to 30 per dollar due to controlled usd rate in interbank.