Rupee Reverses Last Week’s Gains Against US Dollar Despite Fitch Upgrade

The Pakistani rupee (PKR) reversed gains against the US Dollar today after opening trade at 278 in the interbank market. It was bearish all day and closed in red against the greenback, reversing its two-day winning streak. Meanwhile, it posted gains against most of the other major currencies during today’s session. The interbank rate stayed at 278/$ most of the day before closing at the same level. Open market rates across multiple currency counters were strictly at 278-279 today. The PKR depreciated by 0.06 percent and closed at 278.5 after losing 16 paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far depreciated by 0.06 percent. Overall, the rupee is down nearly Rs. 51.59 since January 2023. Since April 2022, it is down Rs. 95.59 against the greenback. As per the exchange rate movements seen during the session, the PKR lost 16 paisas today. In a key development, FitchRatings has upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’. Fitch said the upgrade reflects greater certainty over the continued availability of external funding, in the context of Pakistan’s staff-level agreement (SLA) with the IMF on a new 37-month $7 billion Extended Fund Facility (EFF). Strong performance on the previous, more temporary IMF arrangement helped the country narrow fiscal deficits and rebuild foreign exchange (FX) reserves, and further improvements are likely, it added. The PKR was green against most of the other major currencies in the interbank market today. It gained 13 paisas against the Euro (EUR), 31 paisas against the Australian Dollar (AUD), 32 paisas against the Canadian Dollar (CAD), and Rs. 1.25 against the British Pound (GBP). Meanwhile, it lost four paisas against the UAE Dirham (AED) and four paisas against the Saudi Riyal (SAR) in today’s interbank currency market.