After three days of posting losses against the US Dollar, the Pakistani Rupee gained 29 paisas in the interbank currency market today.
PKR closed at 160.16 on Thursday as compared to Rs. 160.46 on Wednesday.
Pakistani Rupee lost 64 paisas against USD yesterday and 39 paisas on Tuesday after posting a negligible gain of 4 paisas on the opening day of the week.
While this is the first time this week that the PKR movement has shown recovery, this change has not come as a surprise to analysts who predicted such trends in PKR’s exchange rate to the Dollar.
“There were some importers buying dollars to meet their payment obligations, which puts pressure on the rupee,” a foreign exchange dealer earlier in the week stated.
Experts expect the rupee to likely stay range-bound in the coming days. “The trading range for the local currency for this month should be 159-161,” added a dealer.
The virus surge and its impact on exports, remittances, and demand will determine the future course of the exchange rate. The rupee may face downside pressure if the macroeconomic fundamentals deteriorate owing to the spread of the outbreak.
Other factors, such as fiscal reforms, uninterrupted flow of liquidity, may also contribute to the volatility of PKR against USD. IMF and FATF can also impact the exchange rate movement.
However, as compared to other currencies, PKR continued its deterioration from yesterday. It fell 88 paisas against the Euro adding to a loss of Rs. 1.88 yesterday. Against GBP, today’s loss for PKR was only 0.5 paisas after losing 35 paisas on Wednesday