Rupee Rebounds Against Major Currencies

The Pakistani rupee reversed losses against the US Dollar today after opening trade at 280 in the interbank market.

At 11:30 PM, it was bullish, rising as high as 278 after gaining ~Rs. 3 against the greenback during intraday trade.

The interbank rate later dropped back to 282 before anchoring trends at 281 for the remainder of the day. Open market rates across multiple currency counters were stable in the 279-283 range today.

At close, the PKR appreciated by 0.06 percent to close at 281.72 after gaining 17 paisas against the dollar today.

The rupee closed in the green today after halting its 13-day win streak on Tuesday. On a fiscal year-to-date basis, it has so far appreciated by 1.51 percent.

Overall, the rupee is down nearly Rs. 62 since January 2023. Since April 2022, it is down over Rs. 109 against the greenback. As per exchange rate movements seen today, the PKR has gained 17 paisas against the dollar.

In a key development, some of the world’s top money managers see 2024 to be a good year for Pakistan’s dollar-denominated bonds. Investors are trying to analyze the risks as Pakistan holds elections just one month before the current IMF program expires in March this year.

The broad expectation is for the PKR to gain significant traction once the IMF releases more funds for Pakistan. Brief cycles of bulls may persist for the remainder of FY24 but forecasts for end CY24 paint a bleak picture. Many analysts and brokerages see the PKR fall to as low as 325 against the US Dollar by the end of December 2024.

The PKR was green against all of the other major currencies in the interbank market today. It gained five paisas against the UAE Dirham (AED), Rs. 1.6 against the Canadian Dollar (CAD), Rs. 2.18 against the Australian Dollar (AUD), and Rs. 3.10 against the British Pound (GBP).

Moreover, it gained four paisas against the Saudi Riyal (SAR) and Rs. 2.18 against the Euro (EUR) in today’s interbank currency market.