- Currency has cumulatively gained almost Rs4 since Tuesday
Pakistan's rupee maintained its strength against the US dollar, appreciating for the fourth successive session to close at 171.29 in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the PKR settled at 171.29 against the USD after a day-on-day appreciation of Rs0.36 or 0.21%. On Tuesday last week, the PKR had dropped to its lowest level against the US dollar, closing over the 175 level for the first time in the inter-bank market.
However, since then, the currency has recovered significantly against the dollar, gaining close to Rs4 during the last four sessions.
The appreciation comes on the back of Saudi Arabia's $4.2-billion support package for Pakistan, and hope that talks with the International Monetary Fund (IMF) would conclude soon.
On Tuesday night, the Saudi Fund for Development (SFD) announced the issuance of the Royal Directive to deposit an amount worth of $3 billion into the central bank of Pakistan.
Additionally, the SFD said that the royal directive was also issued to finance the oil derivatives trade with a total amount of $1.2 billion throughout the year.
Similarly, Advisor to Prime Minister on Finance and Revenue Shaukat Tarin said on Monday that agreement with the IMF will be announced this week.
However, as the market awaits the IMF announcement, which would get Pakistan a billion-dollar inflow, it may lose patience if it is further delayed, said Asad Rizvi, Ex Treasury Head at Chase Manhattan Bank, in a tweet.
“However, I still see room for some more PKR recovery,” said Rizvi.
Rizvi also expressed concern that supply-chain disruption and higher oil prices could hurt Pakistan.
The rupee had been on a downward slide since May this year, before the announcement of the Saudi Arabia support package helped cool off the currency market.
Inter-bank market rates for dollar on Monday
BID Rs 171.29
OFFER Rs 171.39
In the open market, the PKR gained 60 paisas for both buying and selling against USD, closing at 171.20 and 172.20, respectively.
Against Euro, the PKR gained 2.60 rupees for both buying and selling, closing at 196.50 and 198.40, respectively.
Against UAE Dirham, the PKR gained 30 paisas for buying and 35 paisas for selling, closing at 48.10 and 48.50, respectively.
Against Saudi Riyal, the PKR gained 25 paisas for both buying and selling, closing at 45.10 and 45.55, respectively.
Open-market rates for dollar on Monday
BID Rs 171.20
OFFER Rs 172.20