Pakistani Rupee upward rally depicted strengthening of economy

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Pakistani Rupee upward rally depicted strengthening of economy

The Rupee closed at Rs. 153.52 to the USD today (April 2) from Rs. 153.29 to the USD in the interbank market yesterday (April 1), with a depreciation of 25 paisas.

The depreciation of the Rupee against the US dollar was expected following a long upward rally. ------------------------------

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“The rupee had been appreciating for the last two weeks, but today the demand for US Dollar picked up in the market,” a foreign exchange dealer with a bank said.

He said that importers are buying dollars for their payments, which weighed on the domestic currency. “The local unit has snapped a week-long rally, owing to the payment pressure,” he added.

Some traders and experts on the matter are also of the opinion that the PKR capped the previous gains due to the suspected intervention by the central bank to prevent a rally in the currency.

The financial consultant and journalist, Ali Khizar, wrote on Twitter that PKR touched the low of Rs. 151.25 to the USD right after bond issuance. He said, “Bid-offer spread was wide – a stated policy of SBP to intervene – it perhaps did come to buy. Then importers came to book in forward- earlier exporters were selling”.

PKR had also been posting gains against other major currencies this week until Wednesday. However, Thursday and Friday saw PKR turn around there, with PKR losing against all major currencies on both days.

PKR lost 96 paisas against the Euro, a whopping Rs. 1.25 against the Pound Sterling (GBP), Rs. 1.09 against the Australian Dollar (AUD), and 44 paisas against the Canadian Dollar (CAD).