Rupee Starts the Fiscal Year in the Worst Possible Manner Against the US Dollar

The Pakistani Rupee (PKR) posted losses against the US Dollar (USD) in the interbank currency market on the first trading day of the new fiscal year (2 July) after posting an improvement on the last trading day of the previous fiscal year (30 June).

In the ending fiscal year (FY2021), the PKR had improved by Rs. 10.51 or 6.25 percent against the USD. PKR lost 32.85 paisas against the US Dollar today.

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Rupee Gains Big Against the US Dollar With 6.25% Improvement in FY21

According to the financial analytics firm Capital Stake, the PKR has improved by 6.25 percent against the USD year-to-date during FY2021.

On a day comparison, on the first day of the previous fiscal as compared to the first day of the current fiscal year, there has been a 0.16 percent improvement or 25 paisas. On a weekly comparison, however, the PKR is 1.23 percent or Rs. 1.96 lower than it was a week ago against the greenback.

Today’s standalone movement for the PKR against the USD was of deterioration by 32 paisas. The PKR closed at Rs. 157.87 to the USD today as compared to Rs. 157.54 to the USD on Wednesday (30 June).

Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, said earlier in the day, “Despite [fiscal year] end pressure net reserves with SBP, with banks and total liquid [foreign exchange] reserves [are] in green. More will be known next week”.

He said that the new fiscal year could begin on a tighter note but the conditions should ease next week due to expected inflows. “However, rising oil prices is a cause of worry,” Rizvi added.

The PKR posted mixed results against other major currencies in the interbank currency market today. It appreciated by 48 paisas against the Euro, by 70 paisas against the Pound Sterling (GBP), and by nearly 33 paisas against the Australian Dollar (AUD).

However, it deteriorated by 17 paisas against the Canadian Dollar (CAD).