The Pakistani rupee (PKR) reversed losses and posted small gains against the US Dollar today.
The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining over 20 paisas to reach 283.6 by 11 AM. By 1:25 PM, it stayed at this level.
At close, the PKR appreciated by 0.03 percent and suspended movement at 283.84 after gaining seven paisas today.
The rupee was all green today after market sentiments took a breather after China proposed to build its most expensive Belt and Road Initiative (BRI) to date, a $58 billion railway system in Pakistan to reduce the reliance on Western trade routes.
Currency dealers said markets underperformed despite big news coming out of China. The news opened prospects for higher reserve build up in the future and added exchange rate stabilization with such a volumetric increase in dollar inflows because of the railroad project.
However, this week’s political uncertainty and economic shortfalls have continued to contribute to the rupee’s weakness. Today’s marginal gains suggest investors won’t act just on news and need fiscal adjustments to resume betting big on the South Asian economy.
Pertinently, the rupee is down nearly Rs. 54 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 all green against most of the other major currencies in the interbank market today. It gained one paisa against the UAE Dirham (AED), two paisas against the Saudi Riyal (SAR), 38 paisas against the Canadian Dollar (CAD), 93 paisas against the Australian Dollar (AUD), and Rs. 1.62 against the Euro (EUR).
Conversely, it lost 14 paisas against the Pound Sterling (GBP) in today’s interbank currency market.