Pakistani Rupee continued its appreciation against the US Dollar on thesecond day of the week. The rupee opened the week with a gain of 54 paisasagainst the US Dollar (USD), climbing 95 paisas more against the USD today.
From the lowest exchange rate of Rs. 168.43 to the USD on 20 August, it hasappreciated by almost Rs. 15, or 8.5 percent since then. In March 2021alone, PKR hiked by 3.2 percent against the USD.
According to the dealers, the rupee is strengthening due to improvedexternal position and lower demand for import payments.
The intra-day trading saw PKR in the range of Rs. 152.83 and Rs. 154.25against the USD today. PKR closed at nearly Rs. 153 to the USD in theinterbank market today, appreciating 95 paisas and clocking in at Rs.153.09 to the USD (30 March), up from Monday’s (29 March) Rs. 154.04 to theUSD.
The rupee is currently at a 22-month high against the USD, the level lastseen in June 2019.——————————
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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 thelockdown – the lower the consumption and higher the dollar supply. Thus,the currency is appreciating. Expect money from the IMF, World Bank, andEurobonds to further support FX reserves.”
“The potential impacts of this appreciation will be positive for offsettingimported inflation, given rising oil prices in the global markets, and forlowering the debt repayment burden on the country’s foreign debts. However,it may render exports incompetitive in the short run,” he added.
