Rupee Gains Big Against the US Dollar With 6.25% Improvement in FY21


The Pakistani Rupee (PKR) has improved by Rs. 10.51 or 6.25% against the US Dollar during the current fiscal year (FY2020-21).

According to the financial analytics platform Capital Stake, the PKR has improved 6.25 percent against the US Dollar year-to-date.

The rupee touched a low of Rs. 168.44 against the USD. This was back in July-August 2020 when PKR was trading close to Rs. 170 to the USD.

The local unit touched a high of Rs. 152.27 against the Dollar during May 2021. On the last day of the financial year, the rupee closed at Rs. 157.5437 against the USD as it improved by 19.79 paisas compared to yesterday’s closing of Rs. 157.74.

The month-to-date change for PKR has also been of appreciation as PKR improved by 0.05 percent or Rs. 0.07, against the USD. While on a week-to-day basis, PKR’s overall change has that been of deterioration with 2.04 percent, or Rs. 3.14, loss in value, Capital Stake data showed.

On a day-to-day basis, PKR continued its improvement streak from yesterday in the interbank currency market and once again posted gains against the US Dollar (USD).

Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, said earlier in the day, “Choppy moves do occur in FY end.” He wrote on his Twitter page that in June, Rupee before recovery lost 2.5 percent, or nearly Rs. 4, due to higher Imports, Dividends/GOP payments, and COVID-19 vaccine purchase.

He said, “Next month, the pace of foreign inflows is expected to pick up due to [Eid-ul-Azha] that should support PKR.”

He added, “Since today is the last day of FY21, hence trading activity in inter-bank market in both, FX & Fixed Income Market could be choppy, possibly due to position adjustments/covering, payments or closure of books”.

The PKR also posted blanket gains against other major currencies the second day in a row, after opening the week with blanket losses.

It appreciated by 47 paisas against the Euro, by 31 paisas against the Pound Sterling (GBP), by 61 paisas against the Australian Dollar (AUD), and by 58 paisas against the Canadian Dollar (CAD).

It also posted gains of 5 paisas against the UAE Dirham (AED) and the Saudi Riyal (SAR) in the interbank currency market on the final day of the fiscal year.

Source: Pro Pakistani