Rupee Rebounds Against US Dollar But Barely Holds Out Against Saudi Riyal

The Pakistani rupee reversed losses against the US Dollar during intraday trade today after opening trade at 286.95.

The Pakistani rupee initially red during the afternoon with the interbank rate falling as low as 288 before rebounding back marginally. Open market rates across multiple currency counters managed between 309-320 while traders expect the interbank/market rate to increase further amid the ongoing Hajj season.

The informal exchange rate was trading above 310 to as high as 323 due to daily gains in informal imports while foreign currency shortages due to Hajj season offset profit-taking at currency counters. Today’s cash rate per dollar in hawala was between 306-315 while for telex transfers it went up to between 320-325.

At close, the PKR appreciated by 0.01 percent and closed at 287.13 after gaining two paisas today.

The Rupee managed to close in the green today despite early-day losses which saw the PKR lose roughly Rs. 2 against the USD after opening at the 286 level.

Traders today said institutions have started releasing economic data which shows the country’s performance in the outgoing fiscal year. They opined that misreporting against actual rates of negative growth would hurt markets. Other factors still remain in play. “Many dollar payments for imports are required but due to restrictions, profit seekers are frequenting informal markets to avoid incurring losses via legitimate channels. Remittances are drying up and could drop to precarious levels in the coming weeks. The economy may become unstable,” one of them contended.

The rupee is down nearly Rs. 61 since January 2023. Since April 2022, it is down over Rs. 108 against the greenback. As per the exchange rate movements witnessed today, the PKR has gained two paisas against the dollar today.

The PKR was green against most of the other major currencies in the interbank market today. It held out against the Saudi Riyal (SAR) and the UAE Dirham (AED), gained 25 paisas against the Canadian Dollar (CAD), 71 paisas against the Euro (EUR), Rs. 1.57 against the Australian Dollar (AUD).

Conversely, it lost 71 paisas against the Pound Sterling (GBP) in today’s interbank currency market.

Source: Pro Pakistani