US Dollar declines further against PKR at Interbank

• As per details, the USD is being traded at Rs160.

The value of Pakistani rupee continued to climb against the US Dollar after the value of greenback declined by Rs 1.12 against PKR at Interbank during trading on Wednesday.

As per details, the USD is being traded at Rs160. In its sixth consecutive fall for the greenback to the level last seen on March 24. The dollar has been falling for nearly a week now, declining by Rs7.48 during the period.

The development comes after Pakistan rupee gained Rs2.50 against USD at Interbank market on Tuesday, for both buying and selling at Rs160.50 and Rs161.50, respectively.

This has happened despite the fact SBP cut the policy rate by a surprise 200 bps on Thursday. The general expectation was of currency to depreciate on Friday. Anticipating that, SBP on Friday morning intervened with a meager $20-25 million. Since there was no payment pressure, the market reacted to that small amount to jump the currency up by 1.5-2 percent.

This demonstrates that the general direction for the currency is to appreciate based on fundamentals.