After IMF news, the rupee rises for a third straight day against the dollar

Web DeskJuly 13, 2023
After IMF news, the rupee rises for a third straight day against the dollar

After starting the day at 272 in the interbank market, the Pakistani rupee strengthened further versus the US dollar during intraday trade

It was in the green all day as of 11 AM, reaching a high of 271.75 after increasing by Rs. 5.3 in relation to the US dollar.

Between 12:30 and 1:15 PM, it went back to the 278 level before increasing once more to 276.

Multiple currency counters’ open market rates increased to a range of 282-286.

The Pakistani rupee gained Rs. 1.01 versus the dollar Thursday, rising 0.37 percent to settle at 276.46.

At 11:15 AM, the informal exchange rate showed signs of improvement and climbed to a high of 286 before settling at 289 for the day.

Read more : Analysts predict that the rupee would soon go below 300 against the US dollar.

The cash rate in Hundi for today was in the 285-293 range, however numerous undocumented outlets reported values as high as 300.

The State Bank of Pakistan (SBP) received a $1.2 billion deposit from the International Monetary Fund (IMF) earlier today, which led to today’s gains.

“Pakistan received a $1.2 billion tranche, with the remaining $1.8 billion to be distributed following two evaluations, which will take place in November and February. In a press briefing today, Finance Minister Ishaq Dar stated that this would raise foreign exchange reserves and that following this week’s closure on Friday, SBP reserves will show a rise of $4.2 billion this week.

Pakistan was looking forward to receiving the final $2.5 billion of a bailout package worth $6.5 billion that was decided upon in 2019. However, because the ninth review could not be finished, the package expired on Friday, June 30.

According to one trader, the state is making measures to tempt the market, and today’s returns reflect this.

“Pakistan received a $1.2 billion tranche, with the remaining $1.8 billion to be distributed following two evaluations, which will take place in November and February. In a press briefing today, Finance Minister Ishaq Dar stated that this would raise foreign exchange reserves and that following this week’s closure on Friday, SBP reserves will show a rise of $4.2 billion this week.

Pakistan was looking forward to receiving the final $2.5 billion of a bailout package worth $6.5 billion that was decided upon in 2019. However, because the ninth review could not be finished, the package expired on Friday, June 30.

One trader said to ProPakistani that today’s returns demonstrated the state’s efforts to tempt the market.

“Getting an extra $4.2 billion in FX cover in just one week is a significant accomplishment, but don’t be deceived by the butterfly effect. In other words, we’re increasing our debt, and without enough fiscal protection in 2023–2024, the plot remains the same. Before December 23 expect market participants to drive the PKR to 290-300. While some of us are relying on the Bostans and Dars of our world to prevent all of that, the general consensus is that the manipulation of exchange rates needs to end. The only option is that. Recovery happens later, he continued.

Since January 2023, the rupee has decreased by around Rs 50 overall. It has lost more than Rs. 99 against the US dollar since April 2022. The PKR has increased by Rs. 1.01 versus the dollar today, according to the changes in exchange rates seen today.

On the interbank market today, the PKR was bullish relative to some of the other important currencies. It remained stable versus the Canadian Dollar (CAD), increased by 27 paisas versus the Saudi Riyal (SAR), and decreased by 27 paisas versus the UAE Dirham (AED).

On the other hand, in today’s interbank foreign exchange market, it lost Rs. 1.4 against the Pound Sterling (GBP), Rs. 2.65 against the Euro, and Rs. 3.57 against the Australian Dollar (AUD).

 

 

 

 

 

 

 

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