The Pakistani rupee (PKR) gained small ground and posted gains against the US Dollar today.
The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining a few paisas to reach 283 by 11 AM. By 1:25 PM, it dropped to 284.25 and stayed at this level.
At close, the PKR appreciated by 0.03 percent and suspended movement at 283.39 after gaining seven paisas today.
The rupee was stable today after market sentiments improved with cash movers looking forward to businesses opening after the Eid holidays.
Currency dealers operating across mostly Lahore and Peshawar counters said today’s minimal growth reflects the Industrial and Commercial Bank of China (ICBC) recently approved the third and final disbursement of funds amounting to $300 million under its $1.3 billion arrangement for Pakistan. But bears could reappear as businesses resume commercial hours and macros reboot, they added.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $9.965 billion, up $400 million over the previous week. The net reserves held by banks stood at $5.532 billion, registering an increase of $6 million last week.
While political uncertainty and economic shortfalls have contributed to the rupee’s weakness, one trader believes the PKR is playing with short positions before heading toward 300 against the USD. Aside from the projection, he hopes the currency will remain stable and suggested elections as one of the big options to proceed with for long-term clarity.
Pertinently, the rupee is down nearly Rs. 53 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has gained seven paisas against the dollar.
The PKR was green against most of 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), Rs. 2.55 against the Canadian Dollar (CAD), and Rs. 3 against the Australian Dollar (AUD).
Conversely, it lost 67 paisas against the Pound Sterling (GBP) and Rs. 1.63 against the Euro (EUR) in today’s interbank currency market.