Pakistani Rupee has yet again shown upward movement in today’s interbank market rate as it closed with a gain of 18 paisas against the USD. From PKR 159.09 per USD on November 6, the exchange rate went down to PKR 158.91 on November 9 (today), as per data released by the financial analytics platform Capital Stake.
At the same time, PKR’s deterioration against other currencies has shown a significant reduction. From November 6 to November 9, PKR lost 26 paisas to EUR but lost only 3 paisas to GBP, 2 paisas to AUD, and 19 paisas to CAD in the interbank market.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, while commenting on the Rupee said, “Dollar inflows are above-expectations. Expect another good show in remittances and the current account. With low oil prices, investors are de-dollarizing the savings. Expect further FX reserves once IMF [International Monetary Fund] tranche is cleared. A few milestones before that.”
The local currency is gaining due to a slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the Rupee. On the other hand, exports are stable and improving.
PKR’s improvement against USD can be said to be the result of the inflow of remittances in USD. State Bank of Pakistan’s (SBP) measures to encourage overseas investment in the country is another contributing factor.
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Improvement in exports, primarily led by the textile sector and partially assisted by the early lifting of lockdown restrictions, has also played its part in strengthening the Rupee against the greenback.
According to Daily Forex, the price action of the USD/PKR has demonstrated the ability to incrementally lower resistance levels for the past two months regularly. The forex pair’s dynamics have not been brutal either, which suggests the Pakistani Rupee has politely mustered favor and may continue its path.
The USD/PKR parity has delivered a terrific trend for the past two months and its direction certainly was questioned when the selling first appeared technically.
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