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The Pakistani rupee experienced a notable turnaround against the US Dollar today, commencing trading at 279 in the interbank market.
Initially, at 11:30 PM, it exhibited bearish tendencies, hovering around the 276 mark against the US dollar, suffering a loss of approximately Rs. 3.
Subsequently, during the time frame between 1:30 PM and 2:30 PM, the interbank exchange rate decreased to the 278 level before stabilizing for the rest of the day. Meanwhile, open market rates across various currency exchange counters fluctuated in the range of 277-280.
By the day’s end, the PKR saw a positive change, appreciating by 0.53 percent, ultimately closing at 278.81, having gained Rs. 1.48 against the US dollar throughout the day.
Also Read:Â Gold Rate In Pakistan Today – Latest Tola Prices
This remarkable reversal marked the end of a two-day losing streak for the rupee, largely attributed to significant investment news from Beijing. On Wednesday, the United Energy Group of China and Pakistan Refinery Limited inked a Memorandum of Understanding (MoU) for a $1.5 billion investment in the petroleum sector. Though this development did not have a major impact on the recovery trend, traders noted a more stabilized foreign exchange market for the day, albeit one that still carries substantial volatility as the IMF review looms in the coming weeks.
The gap between interbank and open market rates has shrunk by Rs. 61 since September 4. Rates have oscillated, reaching as low as 277 and occasionally spiking to 280 during the day.
Significantly, the rupee has depreciated by nearly Rs. 61 since January 2023, with a more substantial decrease of over Rs. 108 against the US dollar since April 2022. Considering the exchange rate movements observed today, the PKR managed to gain nearly Rs. 1.5 against the US dollar.
The long-term outlook for the rupee remains uncertain, given Pakistan’s precarious economic fundamentals. The government grapples with substantial debt, while foreign reserves are under strain.
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