The Pakistani rupee reversed gains against the US Dollar during intraday trade today after opening trade at 283.5 in the interbank market.

At 12 PM, it was bullish, rising as high as 283.275 after gaining ~Rs. 4 against the greenback.

Later, it dropped to the 287 level between 1:30 PM and 2:30 PM and stayed at that level.

Open market rates (documented) across multiple currency counters rose to the 293-296 range.

At close, the PKR depreciated by 0.05 percent to close at 287.6 after losing 14 paisas against the dollar today.

The informal exchange rate initially docked at 297-301.

Today’s cash rate per dollar in Hundi clocked in at the 297-304 band while many channels (undocumented) reported rates as high as 305.

Traders suggest more volatility and bears will reign supreme due to political uncertainty leading up to General Elections in October.

Overall, the rupee is down nearly Rs. 65 since January 2023. Since April 2022, it is down over Rs. 115 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained 45 paisas against the dollar today.

In a key development, the State Bank of Pakistan (SBP) Wednesday set a rate of remuneration on the Special Cash Reserve Account (US$), based on July’s CME 1-month Term Secured Overnight Financing Rate (SOFR), minus 1 percent service charges.

“On discontinuation of US Dollar LIBOR, it has been decided that from the month of August 2023, the rate of remuneration on Special Cash Reserve Account (US$) shall be calculated as CME 1-month Term Secured Overnight Financing Rate (SOFR) published on the last working day of the previous month minus 1% service charges,” said a circular issued by the central bank.

In a separate release, the central bank informed all authorized foreign exchange dealers that the rate of remuneration on the Special Cash Reserve Account (US$) maintained with the SBP will be set at 4.32 percent for the month of August 2023.

The PKR was red against some of the other major currencies in the interbank market today. It gained 17 paisas against the British Pound (GBP) and 37 paisas against the Australian Dollar (AUD).

Conversely, it lost three paisas against the Saudi Riyal (SAR), three paisas against the UAE Dirham (AED), 18 paisas against the Canadian Dollar (CAD), and 94 paisas against the Euro (EUR) in today’s interbank currency market.

Source: Pro Pakistani