In another positive development, Pakistani Rupee has made a strong recovery of Rs. 3.30 to 163.57 against the US dollar in the interbank market.
In a surprise but expected move Pakitani Rupee gained by 3.30 rupees in a intraday trading closes at 163.57 today against dollar. This is approximately 2% gained in the parity from previous day close of 166.88, said Yaqoob Abubakar from Tresmark that tracks financial market.
He noted that the appreciation in the currency has been observed rights after the emergency monetary policy hold by SBP yesterday in which SBP lowered the Policy rate to 9%. The surprise move of SBP gave a positive sentiment to the market.
Further he said that IMF approved $1.386 billion under rapid financing instrument to address the economic impact from COVID-19, lower oil prices and multilateral aid supported the parity from the front.
“We foresee that parity will observe volatile session in the coming days and still have space to appreciate further, said Yaqoob.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities, while commenting on the rupee appreciation said that the spike seen in Rupee is primarily to ward off speculators. The reserves at going to cushion after USD 1.386 billion from IMF and debt restructuring. However, Corona impact has just begun globally.
He further added that pressures can not be ruled out domestically and regionally.
G20 countries’ decision to reschedule Pakistan’s debt repayment worth around $12 billion by one year in response to the coronavirus pandemic played a vital role in Rupee’s gain today.
The Rupee had suffered massive losses since the past month due to the increase in demand for dollars on account of foreign selling and outflows from the treasury bills.