For the First Time in Weeks, Rupee Improves Against US Dollar Two Days in A Row

Industry

The Pakistani Rupee finally appreciated against the US Dollar in the international currency market yesterday after weeks of deterioration. Today’s movement for PKR was of slight improvement.

The Rupee fell to its lowest level in four months against the US Dollar (USD) this week and breached the level of Rs. 158 on Tuesday. Yesterday, after several consecutive days of posting heavy losses, PKR turned the tide and posted significant improvement.

The PKR appreciated 6 paisas against the greenback in the interbank currency market on Friday (25 June), closing at Rs. 157.61 against the USD, as compared to Rs. 157.67 on Thursday (24 June).

According to the investment analytics platform Capital Stake, PKR gained nearly 1.39 percent in its value on a year to date while on a month to date and week to date basis, PKR showed depreciation of 2.08 percent and 0.46 percent, respectively.

The recent downfall of the Rupee in the international currency market may be attributed to higher import payments coupled with the expected delay in the sixth review of the International Monetary Fund’s (IMF) $6 billion loan program.

Former Treasury Head at Chase Manhattan Bank, Asad Rizvi said, “Rupee could open with a firmer tone but is likely to wobble due to FY end demand for [US Dollar],” adding, “Fall in FX Reserves and weekend holiday in Gulf may add pressure. However,it is encouraging [to see] interest in B/S Swap in 9 and 12 months,which means inflow of [dollars] as exporters are selling USD”.

The PKR saw a day of improvements against most major currencies as well.

PKR depreciated by 9 paisas against the Euro and by 27 paisas against the Australian Dollar (AUD).

Apart from that, it appreciated by Rs. 1.13 against the Pound Sterling (GBP), by 11.7 paisas against the Canadian Dollar (CAD), and negligibly improved by 1.6 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR) as well.

Source: Pro Pakistani