The Pakistani rupee gained further ground against the US Dollar during intraday trade today after opening trade at 272 in the interbank market.
At 11 AM, it was green all day, rising as high as 271.75 after gaining Rs. 5.3 against the greenback.
Later, it returned to the 278 level between 12:30 PM and 1:15 PM before rising again to 276.
Open market rates across multiple currency counters recovered to the 282-286 range.
At close, the PKR appreciated by 0.37 percent to close at 276.46 after gaining Rs. 1.01 against the dollar today.
The informal exchange rate had recovered encouragingly and at 11:30 AM rose to the 286 level, before docking at 289.
Today’s cash rate per dollar in Hundi clocked in at the 285-293 band while many channels (undocumented) reported rates as high as 300.
Today’s gains come after the International Monetary Fund (IMF) deposited $1.2 billion in the State Bank of Pakistan (SBP) earlier today.
“Pakistan received an installment of $1.2 billion and the remaining $1.8 billion would be disbursed after two reviews, which will be held in November and February. This would boost foreign exchange reserves, and after this week’s closing on Friday, SBP reserves would show an increase of $4.2 billion this week,” Finance Minister Ishaq Dar said in a media briefing today.
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 state is pulling moves to entice the market, which showed in today’s returns.
“Getting an additional $4.2 billion forex cover in the space of just 1 week is a big achievement, but don’t be fooled by the butterfly effect. We’re essentially building up more debt and without sufficient fiscal hedge in 2023-24, the storyline doesn’t change. Expect market players to push the PKR to 290-300 before December ’23. Some of us are counting on the Bostans and Dars of our world to avoid all that, but the wider consensus is that the exchange rate meddling should stop. That’s the only way. Recovery comes later,” he added.
Overall, the rupee is down nearly Rs. 50 since January 2023. Since April 2022, it is down over Rs. 99 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained Rs. 1.01 against the dollar today.
The PKR was bullish against some of the other major currencies in the interbank market today. It held out against the Canadian Dollar (CAD), gained 27 paisas against the Saudi Riyal (SAR), and 27 paisas against the UAE Dirham (AED).
Conversely, it lost Rs. 1.4 against the Pound Sterling (GBP), Rs. 2.65 against the Euro (EUR), and Rs. 3.57 against the Australian Dollar (AUD) in today’s interbank currency market.
Source: Pro Pakistani