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Rupee Posts Highest Ever Recovery After 31 Sessions Against the US Dollar

The Pakistani Rupee (PKR) has finally reversed its losing streak against the US Dollar (USD) and appreciated by 72 paisas against the greenback in the interbank market today. However, it hit an intra-day low of Rs. 178.57 against the USD during today’s open market session.

The PKR appreciated by 0.41 percent against the USD and closed at Rs. 177.51 today after closing at an all-time low of 178.24 in the interbank market on Wednesday, 29 December.

The rupee has recovered by 0.41 percent on a day-to-day basis, posting its highest every recovery against the dollar after 31 sessions. So far, the local currency has lost 11.25 percent on a fiscal-year-to-date basis, besides depreciating by 14.22 percent on a calendar-year-to-date basis.

Resultantly, today’s gains give the exchange ledger some respite as the focus progressively switches towards adapting the newly approved mini-budget. This amendment, which is valued over Rs. 360 billion, is likely to help the local currency weather the storm of inflationary pressures and may offer clarity on how it will fare in the face of near-term economic uncertainties.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted, “As we are approaching year-end there is nothing much to talk about Rupee, as corporate sector[s] have squared their books. It’s the year-end payments that make PKR vulnerable. However, to manage cash flows, Rs/$ short-dated swaps will remain active in the interbank market”.

The PKR reversed its declining trend against other major currencies in an impressive highlight of encouraging gains. It posted gains of 10 paisas against the Pound Sterling (GBP), 40 paisas against the Canadian Dollar (CAD), and 10 paisas against the Euro (EUR).

It also gained 18 paisas against the Saudi Riyal (SAR) and 19 paisas against the UAE Dirham (AED) in today’s interbank currency market.

Moreover, the rupee appreciated against the Australian Dollar (AUD) and posted gains of 12 paisas in today’s interbank currency market.

Source: Pro Pakistani

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