Rupee Stumbles Against Major Currencies Despite Gains Over the US Dollar

The Pakistani Rupee (PKR) is persisting with its positive run against the US Dollar (USD) and posted gains in the interbank market today. It gained 28 paisas against the greenback after hitting an intra-day high of Rs. 175.95 against the USD during today’s open market session.

It appreciated by 0.16 percent against the USD and closed at Rs. 176.43 today after gaining five paisas and closing at 176.72 in the interbank market on Monday, 31 January.

The rupee closed in the green against the dollar for the fourth consecutive day as the local exchange ledger gears up for tomorrow’s meeting of the Executive Board of the International Monetary Fund (IMF). As scheduled, the global lender will review and finally address the fate of the stalled $6 billion Extended Fund Facility (EFF) program tomorrow.

The completion of the review will make SDR 750 million (nearly $1,059 million) available for Pakistan, which will bring the total disbursements under the EFF to around $3,027 million.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, explained how the rupee has continued to trade within a tight range of 176.65-176.75. “Since [the] last couple of weeks, the trend has almost remained unchanged,” he said.

Referencing tomorrow’s IMF meeting, he added that the local unit is expected to stay range-bound unless a significant payment is in the works this week.

The PKR mirrored yesterday’s disappointing run against most of the other major currencies and reported losses in the interbank currency market today. It lost 44 paisas against the Canadian Dollar (CAD), 44 paisas against the Australian Dollar (AUD), 46 paisas against the Pound Sterling (GBP), and Rs. 1.22 against the Euro (EUR).

Conversely, it gained seven paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani