The Pakistani rupee recorded a small recovery of nearly 12 paisas against the US Dollar during intraday trade today after rising as high as 281 at 10:50 AM.
The Pakistani rupee was bearish during the afternoon with the interbank rate losing Rs. 2 to fall as low as 287 before rebounding back above 285 for the second time today. Open market rates across multiple currency counters still managed to register highs of 300 while traders expect the exchange rate to drop to 290 if the political temperature cools off in the days ahead.
At close, the PKR appreciated by 0.04 percent and suspended movement at 284.97 after gaining 11 paisas today.
Traders said the exchange rate moved in the positive range on Monday after tensions eased following lackluster protests outside the premises of the Supreme Court of Pakistan. Markets moved in the green with the expectation that sentiments will improve with the restoration of internet services and political ease. However, uncertainty pertaining to the IMF bailout could offset gains in the coming weeks.
Markets also observed some respite after the International Monetary Fund (IMF) clarified that there is no change in Pakistan’s external financing requirements for the revival of the bailout program.
Some traders still advised caution on exchange rate movement this week, with uncertainty looming on whether stakeholders would reach an agreement on calling a truce instead of prolonging their indifference beyond May. “The 300 level was achieved in a day, the next drop would be much easier. Believe it or not, markets are keeping a close watch on lawmakers. Decisions in favor of the public will definitely favor the economy, and consequently, the markets as well,” they said.
The rupee is down nearly Rs. 58 since January 2023. Since April 2022, it is down over Rs. 105 against the greenback. As per exchange rate movements witnessed today, the PKR has gained nearly 12 paisas against the dollar.
The PKR gained against the other major currencies in the interbank market today. It gained two paisas against the UAE Dirham (AED), three paisas against the Saudi Riyal (SAR), and 43 paisas against the Canadian Dollar (CAD).
Source: Pro Pakistani