Pak Rupee Recovers Slightly Against US Dollar

The Pakistani rupee recovered slightly against the US Dollar today after opening trade at 281 in the interbank market. It was initially bearish against the greenback, falling as low as 281 against the $ during intraday trade today. Notably, other market indicators (PSX, public sentiment) continued to fall considerably. PSX reverted its intraday losses to close in positive territory. The interbank rate hovered between 279 and 281 before closing at the same level for the remainder of the day. Open market rates across multiple currency counters were in the 279-281 range today. At close, the PKR appreciated by 0.01 percent to close at 279.31 after gaining two paisas against the dollar today. The rupee closed in the green today having lost some ground a day earlier. On a fiscal year-to-date basis, it has so far appreciated by 2.37 percent. Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 107 against the greenback. As per the exchange rate movements seen today, the PKR gained two paisas against the dollar today. In a key development, the International Monetary Fund (IMF) has rejected Pakistan’s rationalization and circular debt reduction measures a day after the Energy Ministry (Petroleum Division) reassured of productive deliberations with the lender. IMF’s Mission Chief to Pakistan Nathan Porter said in response to a query late Monday night, “In our view, the proposed plan does not address the underlying problems. In particular, the CD neutrality of the tariff rationalization plan is doubtful and it would place a significant additional burden on vulnerable households”. He also said, “We are open to working with the government and other international partners to advance a sustainable reform plan addressing the issues mentioned above which, if successfully implemented, would allow tariffs for all classes of consumers to fall”. The PKR was green against most of the other major currencies in the interbank market today. It was stable against the Saudi Riyal (SAR) and the UAE Dirham (AED), gained six paisas against the Australian Dollar (AUD), and 76 paisas against the Euro (EUR). Conversely, it lost six paisas against the Canadian Dollar (CAD) and 18 paisas against the British Pound (GBP) in today’s interbank currency market.