Today, the Pakistani rupee (PKR) saw gains against the US dollar, rising by 0.15 percent to close at 283.47 after gaining 42 paisas throughout the day. The interbank rate remained largely stable, gaining around Rs. 5 to reach 279.17 by 11 AM before dropping to 283-284 by 1:25 PM, where it remained until the market closed.
Currency dealers attributed the recent stability of the PKR to quick inflows of greenbacks from overseas Pakistanis during the last few days of the Holy Month of Ramazan. While political noise and economic shortfalls have put pressure on the rupee, some traders predict that the PKR may reach 300 against the USD before stabilizing around 290 for at least three months.
Market participants are also waiting for the International Monetary Fund (IMF) Extended Fund Facility (EFF) to resume operations after being stalled since last year. The decline in import payments and increase in remittances from workers have also reduced demand for US dollars, contributing to the PKR’s recent strength.
Globally, the US dollar has suffered a decline in recent weeks due to exceptional actions taken by Russia, India, China, and other nations to push their own currencies instead of the greenback. The PKR is down nearly Rs. 53 since January 2023 and over Rs. 101 since April 2022 against the USD. Despite this, today the PKR gained against all major currencies in the interbank market, including the Saudi Riyal, UAE Dirham, Australian Dollar, Canadian Dollar, Euro, and Pound Sterling.
