Rupee Abruptly Halts 9-Day Win Streak Versus US Dollar Despite UAE News

The Pakistani rupee broke its 9-day winning streak against the US Dollar today after opening trade at 281 in the interbank market. At 11:30 PM, it was stable, rising as high as 280 after gaining ~Rs. 1 against the greenback during intraday trade. The interbank rate later dropped back to 280 before closing at the same level for the remainder of the day. Open market rates across multiple currency counters were stable in the 280-281 range today. At close, the PKR depreciated by 0.003 percent to close at 280.24 after losing one paisa against the dollar today. The rupee closed in the red today, ending its 9-day win streak against the greenback. On a fiscal year-to-date basis, it has so far appreciated by 2.05 percent. Overall, the rupee is down nearly Rs. 61 since January 2023. Since April 2022, it is down over Rs. 108 against the greenback. As per exchange rate movements seen today, the PKR has lost one paisa against the dollar. Today’s tiny losses come despite news that the United Arab Emirates (UAE) is likely to roll over a $2 billion loan to Pakistan for one year this year. Finance Ministry sources are confident that the $2 billion debt deferral will be successfully negotiated and finalized within this week. The terms of the rollover involve a 3 percent interest rate on $1 billion and a 6.5 percent rate on the remaining $1 billion. The PKR was green against most of the other major currencies in the interbank market today. It gained Rs. 1.16 against the Euro (EUR), Rs. 1.28 against the Canadian Dollar (CAD), Rs. 1.54 against the Australian Dollar (AUD), and Rs. 2.14 against the British Pound (GBP). Meanwhile, it was stable against the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s interbank currency market.