The Rupee closed at Rs. 153.52 to the USD today (April 2) from Rs. 153.29to the USD in the interbank market yesterday (April 1), with a depreciationof 25 paisas.
The depreciation of the Rupee against the US dollar was expected followinga long upward rally.——————————
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“The rupee had been appreciating for the last two weeks, but today thedemand for US Dollar picked up in the market,” a foreign exchange dealerwith a bank said.
He said that importers are buying dollars for their payments, which weighedon 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 PKRcapped the previous gains due to the suspected intervention by the centralbank to prevent a rally in the currency.
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The financial consultant and journalist, Ali Khizar, wrote on Twitter thatPKR touched the low of Rs. 151.25 to the USD right after bond issuance. Hesaid, “Bid-offer spread was wide – a stated policy of SBP to intervene – itperhaps did come to buy. Then importers came to book in forward- earlierexporters were selling”.
PKR had also been posting gains against other major currencies this weekuntil 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 PoundSterling (GBP), Rs. 1.09 against the Australian Dollar (AUD), and 44 paisasagainst the Canadian Dollar (CAD).
