The Pakistani rupee rose higher against the US Dollar during intraday trade today after opening trade at 279 in the interbank market.
At 11 AM, it was green all day, rising as high as 274.4 after gaining Rs. 4.1 against the greenback.
Later, it returned to the 278 level between 12:30 PM and 1:15 PM before rising again to 277.1.
Open market rates across multiple currency counters recovered to the 284-289 range.
At close, the PKR appreciated by 0.39 percent to close at 277.47 after gaining Rs. 1.08 against the dollar today.
The informal exchange rate had recovered encouragingly and at 11:30 AM rose to the 289 level, before docking at 290.
Today’s cash rate per dollar in Hundi clocked in at 286-296 band while many channels (undocumented) reported rates as high as 303.
Today’s gains come with expectations of a unanimous vote by IMF’s Executive Board in favor of disbursing the initial tranche of $1.1 billion to Pakistan.
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.
Pakistan was anticipating the release of the remaining $2.5 billion from a $6.5 billion bailout package that was agreed upon in 2019. However, the package expired on Friday (30 June), as the ninth review could not be completed.
One trader told ProPakistani that the PKR continued its positive trajectory in expectations of the central bank’s reserves moving levels up the current lows of ~$4 billion.
“The forex element is one of the critical elements driving market sentiments and the more it grows, the better the mood of investors. Today’s IMF Board meeting will offer more gains in the remaining days of the week if cash is approved for credit. However, it should be noted that the long-term forecasts show a decline. So, don’t be surprised if the rupee resumes fall tomorrow or next week,” he added.
Overall, the rupee is down nearly Rs. 51 since January 2023. Since April 2022, it is down over Rs. 100 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained Rs. 1.08 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 Canadian Dollar (CAD), 29 paisas against the Saudi Riyal (SAR), 29 paisas against the UAE Dirham (AED), 46 paisas against the Australian Dollar (AUD), and 85 paisas against the Euro (EUR).
Conversely, it lost 12 paisas against the Pound Sterling (GBP) in today’s interbank currency market.
Rupee is not appreciate its being control. Where it’s available at this price? Interbank rate is a lurking to facilitate banks so they can legally rob people using official channel.