Rupee Rises 11th Day in a Row Versus US Dollar
The Pakistani rupee continued its remarkable rally on Wednesday, appreciating for the 11th consecutive day against the US dollar. Opening trade saw the rupee bullish, reaching a high of 279 after gaining nearly Rs. 4 during intraday sessions.
Since January 2023, the rupee has weakened by nearly Rs. 63 against the greenback, and the gap widens to over Rs. 110 since April 2022. However, today’s exchange rate movements offer a glimmer of hope, with the PKR clawing back 17 paisas against the dollar.
By 11:30 PM, the interbank rate retreated slightly to 282 before settling at that level for the remainder of the day. Open market rates across various currency counters also remained stable, hovering within the 281-283 range.
At close, the PKR strengthened by 0.06%, ending the day at 282.19, marking a 17 paisa gain against the dollar. This winning streak extends the rupee’s year-to-date appreciation to 1.34% on a fiscal basis, although it still faces a 19.76% depreciation for the entire calendar year.
While the dollar story remains positive, the PKR did experience some losses against other major currencies in the interbank market today. It depreciated by 33 paisas against the Euro, 56 paisas against the Australian Dollar, and 78 paisas each against the British Pound and Canadian Dollar. However, minor gains were observed against the Saudi Riyal (2 paisas) and the UAE Dirham (4 paisas).
Traders attribute the recent gains to the State Bank of Pakistan’s strict zero-current account deficit (CAD) policy, encouraging businesses to book import/export transactions in advance at favorable rates. Banks are also facilitating trade within the International Monetary Fund’s (IMF) cap limit on foreign exchange. This trend is expected to continue, potentially leading to gradual PKR appreciation in the lead-up to upcoming elections.
With continued efforts to manage the country’s foreign exchange reserves and a potential post-election boost, the Pakistani rupee’s recent recovery could mark a turning point in its turbulent year.
The Pakistani rupee continued its remarkable rally on Wednesday, appreciating for the 11th consecutive day against the US dollar. Opening trade saw the rupee bullish, reaching a high of 279 after gaining nearly Rs. 4 during intraday sessions. Since January 2023, the rupee has weakened by nearly Rs. 63 against…