The rupee gained 95 paisa against the US dollar in the Interbank Trading session on Tuesday, continuing its upward trend. The local currency ended the day’s trade at Rs153.09 per dollar, down from Rs154.04 per dollar the day before.
In Interbank Trading The rupee traded with a 69-paisa band per dollar, with an Rs153.75 high intraday and an Rs153.10 low. The rupee was trading at Rs153/154 per dollar (buy/sell) on the open market. The Pakistani rupee has been in value as its foreign exchange reserves have grown and economic sentiment has improved. “Although emerging market currencies are currently struggling, the Pakistan rupee has emerged as an unexpected winner so far is 2021”. Said Mattias Martinsson, Founder and chief investment officer of Tundra Fonder, on Twitter.
The rupee in FY2021, according to Mettis Global numbers, increased by 9.77% or Rs14.96, while the increase in CY21 increased by 4.40% or Rs6.74, with the rupee forecast to increase by 3.27% monthly. The rupee at a 22-month high, trading at levels last seen in June 2019. After gaining Rs5 or 3.27% against the dollar in March alone. There a mistake “The rupee boosted by the restoration of the scheme of the International Monetary Fund. The Board’s approval of $500 million. Moreover, other multilateral organizations, including the World Bank, have improved basics by $1.3 billion”. President of the Forex Association of Pakistan, Malik Bostan, said.
In terms of market dynamics, he said that demand is relatively low and is primarily driven by students studying abroad for educational reasons. Exchange firms alone receive $7-8 million a day at their counters, indicating plenty of availability. Following that, the liquidity is deposited in the interbank market. He also attributed the rupee’s recent gains to the Roshan Digital Accounts. Zafar Paracha, the former Secretary-General of the Pakistan Exchange Companies Association, agreed. “The policies of the State Bank are beginning to bear fruit, with more and more transactions going through the formal channels,” he said.
Meanwhile, the rupee gained Rs1.9 against the pound sterling, closing at Rs210.85 per GBP, up from Rs212.79 per GBP at the previous session’s close. Similarly, the rupee gained Rs1.4 against the euro today, closing at Rs179.84 on the interbank market. Meanwhile, at the end of the session, the money market’s overnight repo rate was 7.60/7.75 per cent, while the one-week rate was 7.10/7.15 per cent.