The Pakistani Rupee (PKR) is persisting with its positive run against the US Dollar (USD) and posted gains in the interbank market today. It gained five paisas against the greenback after hitting an intra-day low of Rs. 176.95 against the USD during today’s open market session.

It appreciated by 0.03 percent against the USD and closed at Rs. 176.72 today after gaining 20 paisas and closing at 176.77 in the interbank market on Friday, 28 January.

The rupee closed in the green against the dollar for the third consecutive day in response to the passage of the State Bank of Pakistan Amendment Bill on Friday. The passage of the bill from the Senate was imperative for the International Monetary Fund (IMF) to consider Pakistan’s Sixth Review and the delivery of a $1 billion tranche under its Extended Fund Facility. The global lender’s executive board will discuss this program on 2 February.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted that the central bank is in a difficult situation as it needs another IMF tranche to meet its external financing requirements.

He pointed out that the central bank was compelled to take a number of measures to calm down the mood because the market wanted considerably higher rates for government treasury bills in the fourth quarter of 2021. “While in present scenario it is worrisome for independent SBP to stay behind the curve. It is a bit of [a] challenge,” he added.

The PKR reversed its winning run against most of the other major currencies and reported losses in the interbank currency market today. It lost 54 paisas against the Euro (EUR), 51 paisas against the Canadian Dollar (CAD), 79 paisas against the Australian Dollar (AUD), and Rs. 1.11 against the Pound Sterling (GBP).

Conversely, it gained one paisa against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani