Pakistan’s rupee closed again against the US dollar for the second consecutive session, closing below the 175 level at the inter-bank market on Tuesday.
As per the State Bank of Pakistan (SBP), the PKR closed at 174.89 against the USD after a day-on-day appreciation of Rs0.40 or 0.23%. The improvement comes after the rupee gained 0.25% or Rs0.44 against the dollar on Monday.
On Friday, PKR had depreciated to its lowest historic level of 175.73 against the USD in the inter-bank market.
“The appreciation comes on the back of positive sentiment in the market, especially after Advisor to PM on Finance Shaukat Tarin’s statements regarding funding from Saudi Arabia and negotiations with the International Monetary Fund (IMF),” Tahir Abbas, Head of Research at Arif Habib Limited, told Business Recorder.
After a week-long losing streak, Pakistan’s rupee gains against the US dollar
Abbas said doubts regarding the release of funds from KSA led to speculation in the market.
Talking to a private channel, Tarin had said that Pakistan would soon receive dollar inflows from the IMF and Saudi Arabia, which will improve the exchange rate.
Earlier, Tarin also held speculators responsible for the most-recent devaluation of the PKR. “We are tightening the noose around them,” he said while addressing an event in Karachi.
Meanwhile, Abbas was of the view that the PKR could fall to 169 as soon as Pakistan receives the funds.
Historic weakness: Pakistan’s rupee hits all-time low against US dollar
“The release of Saudi funds would ease pressure on the rupee. Additionally, after Pakistan’s negotiations with the IMF, doors will open to funds from other lenders as well,” he said.
Inter-bank market rates for dollar on Tuesday
BID Rs 174.89
OFFER Rs 174.99
In the open market, the PKR gained one rupee for buying and 80 paisas for selling against USD, closing at 176 and 177, respectively.
Against Euro, the PKR gained 50 paisas for buying and 55 paisas for selling, closing at 199.50 and 201.45, respectively.
Against UAE Dirham, the PKR gained 1.30 rupees for buying and 1.35 rupees for selling, closing at 49 and 49.45, respectively.
Against Saudi Riyal, the PKR gained 50 paisas for both buying and selling, closing at 46 and 46.45, respectively.