Rupee Rises to Its Highest Value Against the US Dollar Since Mid-2019 - Android

Pakistani Rupee continued its appreciation against the US Dollar on Monday. The Rupee (PKR) opened the week with a gain… Read More

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Pakistani Rupee continued its appreciation against the US Dollar on Monday. The Rupee (PKR) opened the week with a gain of 54 paisas against the US Dollar (USD).

The PKR closed nearly at Rs. 154 to the USD in the interbank market today, appreciating 54 paisas and clocking in at Rs. 154.03 to the USD (29 March), up from Friday’s (26 March) Rs. 154.58 to the USD.

CEO of Alpha Beta Core Securities, Khurram Schehzad told ProPakistani that the rupee is currently at a 22-month high against the USD, the level last seen in June 2019. From the lowest exchange rate of Rs. 168.43 to the USD on Aug 20, it has appreciated by Rs. 14.3, or 8.5 percent since then.

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A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, said, “Market supply is higher as travel and imports are still curtailed. Expect more money to clock-in because of the Ramzan factor, remittances, and Roshan Digital Account (RDA). The lesser the travel – the stringent the lockdown – the lower the consumption and higher the dollar supply. Thus, the currency is appreciating. Expect money from the IMF, World Bank, and Eurobonds to further support FX reserves.”

“The potential impacts of this appreciation will be positive for offsetting imported inflation, given rising oil prices in the global markets, and for lowering the debt repayment burden on the country’s foreign debts. However, it may render exports incompetitive in the short run,” he added.

Soomro said, “There is another peculiar angle to the PKR. Despite, the independence of the SBP, the government would want to muster all the anti-inflationary support it can as it moved to increase electricity prices by a massive 34 percent to meet reduce Circular Debt. Currency managers seem to be extending an olive branch. No sign of major depreciation for a few months, as REER is around approximately 95 rupees as well. Nonetheless, major swings should be avoided either side.”

The opening day of the week spelled good news for the PKR as it posted gains against all major currencies. PKR appreciated by 83 paisas against the Euro, by 17 paisas against the Pound Sterling (GBP), by 23 paisas against the Australian Dollar (AUD), and by 83 paisas against the Canadian Dollar (CAD).

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The PKR has also been improving gradually against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in the interbank market. It improved by 14 paisas against both the AED and the SAR today.

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