The Pakistani rupee showed a modest recovery against the US Dollar during intraday trade, increasing by nearly 12 paisas after reaching a peak of 281 earlier in the day. However, the rupee experienced bearish momentum in the afternoon, with the interbank rate falling by Rs. 2 to reach a low of 287 before bouncing back above 285. Despite this, open market rates remained high at around 300, while traders anticipated a drop to 290 if the political situation stabilized in the coming days.
By the end of the trading day, the PKR exhibited a 0.04 percent appreciation, settling at 284.97 after gaining 11 paisas. Market experts attributed the positive movement to reduced tensions following lackluster protests outside the Supreme Court of Pakistan. They anticipated an improvement in sentiment with the restoration of internet services and political stability. However, the uncertainty surrounding the IMF bailout could potentially offset any gains in the following weeks.
The International Monetary Fund (IMF) provided some relief to the markets by confirming that Pakistan’s external financing requirements for the revival of the bailout program remained unchanged. However, traders advised caution regarding exchange rate fluctuations in the upcoming week, as the outcome of discussions among stakeholders to reach an agreement and resolve their differences beyond May remained uncertain.
The next drop below the 300 mark was expected to occur more easily, and the markets closely monitored lawmakers’ decisions, believing that measures in favor of the public would positively impact the economy and consequently, the markets.
Since January 2023, the rupee has witnessed a decline of nearly Rs. 58, and since April 2022, it has depreciated by over Rs. 105 against the US Dollar. In today’s trading, the PKR gained nearly 12 paisas against the Dollar.
Additionally, it also experienced gains against other major currencies in the interbank market, appreciating by two paisas against the UAE Dirham (AED), three paisas against the Saudi Riyal (SAR), and 43 paisas against the Canadian Dollar (CAD). Moreover, the rupee strengthened by 19 paisas against the Australian Dollar (AUD), Rs. 1.2 against the Pound Sterling (GBP), and Rs. 1.22 against the Euro (EUR) in today’s interbank currency market.
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