Against USD: Pakistan's rupee fights back with significant recovery

After days of decline, Pakistan's rupee hit back with a significant gain against the US dollar, appreciating 0.41% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the PKR closed at 177.51 against the USD after a day-on-day appreciation of 73 paisas or 0.41%. Just a day ago, the PKR had closed at its all-time record low of 178.24 against the USD.

“This is the highest recovery after 31 sessions,” said Arif Habib Limited (AHL) in a research note.

Cumulatively, the rupee has depreciated nearly 10% CYTD, 11.25% FYTD, and 14.22% since its CY21’s high achieved on May 14 against the US dollar.

The currency has been under pressure due to a bulging import bill that has been worsened due to higher commodity prices in the international market.

Against USD: Pakistan's rupee drops to record low

“As we approach the year-end, there is nothing much to talk about the rupee, as the corporate sector has squared their books,” Asad Rizvi, Ex-Treasury Head at Chase Manhattan, tweeted.

Rizvi added that it is the year-end payments that make rupee vulnerable. “However, to manage cash flows, Rs/$ short-dated swaps will remain active in the inter-bank market,” he said.

Internationally, dollar rose against major rival currencies in holiday-thinned trading on Thursday.

The dollar index, which measures the greenback against major peers, rose 0.39% to 96.19 after the S&P 500 and the Dow Jones Industrial Average stock indexes closed at all-time highs on Wednesday, the latter rising for a sixth session.

Inter-bank market rates for dollar on Thursday

BID Rs 177.25

OFFER Rs 177.35

Open-market movement

In the open market, the PKR gained 80 paisas for both buying and selling against USD, closing at 179 and 179.50, respectively.

Against Euro, the PKR gained 50 paisas for buying while remaining unchanged for selling, closing at 200 and 202, respectively.

Against UAE Dirham, the PKR gained 40 paisas for buying and 30 paisas for selling, closing at 50.30 and 50.80, respectively.

Against Saudi Riyal, the PKR gained 40 paisas for both buying and selling, closing at 46.60 and 47, respectively.

Open-market rates for dollar on Thursday

BID Rs 179

OFFER Rs 179.50