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Sunday, April 14, 2024

Intra-day update: PKR continues to strengthen against the USD

During intra-day trade, the rupee was quoted at 221.49, up 1.15% against the US dollar, at roughly 11:00 a.m

The Pakistani Rupee is on the path of improvement as it continued to strengthen against the US Dollar due to improved market outlook, touching around 221 level in the inter-bank market on Wednesday.

During intra-day trade, the rupee was quoted at 221.49, up 1.15 percent against the US dollar, at roughly 11:00 a.m.

In the past week the rupee recorded a considerable gain of 6.8 percent against the greenback to close at 224.04 in the inter-bank.

Trade deficit of the country declined by 18 percent and import bill for the month of July was lower. These important developments resulted in rupee staying stronger throughout the past week as pressure on the currency was reduced that had previously been pressed by the dollar.

Read more: Pakistan’s trade deficit declined by 18 percent in July 2022

As soon as Pakistan fulfilled the last prior condition of the global lender for the combined seventh and eighth review, by increasing petroleum development levy (PDL), there was an improvement in market outlook.

Moreover, PKR is expected to range between Rs.200-240 during FY23 where on average basis it is likely to settle at around Rs.220 vs. average of Rs.178 in FY22, according to  Topline Securities in its ‘Pakistan Market Outlook – Mid Year Strategy 2022’.

Read more: National economy departs towards ‘stability’

The report says, “falling imports and likely resumption of IMF and other flows will bring the much-needed stability in Pak Rupee.”

As reported by the state-run news agency WAM, United Arab Emirates (UAE) is planning to invest $1 billion in Pakistani companies. Also, The IMF was reported last month to be looking to assess Saudi Arabia’s commitment to financing Pakistan before disbursing funds to the country. IMF wanted to ensure that Saudi Arabia will follow through with as much as $4 billion in funding to Pakistan to ensure Islamabad does not have a financing gap after the IMF loan.

Saudi Arabia is the prior most country that has consented to give commitment to the IMF, according to a senior government official.