The Pakistani Rupee (PKR) posted big gains against the US Dollar (USD) and appreciated Rs. 1.12 paisas against the greenback in the inter-bank market today- one of its highest single-day gains in 2021. It hit an intra-day high of Rs. 173.75 against the USD during today’s open market session.
The PKR appreciated by 0.65 percent against the USD and closed at Rs. 173.76 today after it posted gains of 40 paisas and closed at Rs. 174.89 in the inter-bank market on Tuesday, 16 November.
Today’s gains come on the back of news that the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will convene its next meeting on Friday, 19 November. The SBP explained, in a revised circular, that the meeting was brought forward in consideration of the recent developments that have affected the inflation outlook and the balance of payments.
Other than the MPC preponement, the PKR is expected to appreciate even further on the back of the positive sentiment in the market and the near-term approval of the International Monetary Fund’s (IMF) sixth review on fulfilling five prior actions.
The Advisor on Finance, Shaukat Tarin, discussed the Rupee forecast with reporters in reference to the emerging trends. He said that the government has increased the power tariff besides withdrawing tax exemptions.
On the other hand, the Ministry of Law is reviewing the SBP autonomy bill that will be passed soon. He added that the Rupee will soon strengthen after the completion of the sixth review of the IMF.
Regarding the PKR’s interbank performance earlier today during the trading hours, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said, “MPC [Monetary Policy Committee] on Nov 19 instead of Nov 26. Petroleum prices hiked in a hurry on Nov 5 instead of NOV 16, more 2come. #PKR at [a] desired level, more easy 2do. Gas/Electricity adjusted upward, some more to come. CRR UP to 6%”.
He added, “Liquidity CRUNCH & Hike 100bp or + Deposit Rate Attractive”.
The PKR maintained its performance against other major currencies as well and posted encouraging gains in the inter-bank currency market today.
It continued its winning streak against the Euro for the second day running after it posted big gains of Rs. 2.28 against the eurozone currency. It also posted 37 paisas against the Malaysian Ringgit (MYR), and 19 paisas against the Chinese Yuan (CNY).
It posted gains of 30 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s inter-bank currency market.
Besides this, the PKR posted whopping gains of Rs. 1.18 against the Canadian Dollar (CAD), Rs. 1.72 against the Australian Dollar (AUD), and Rs. 1.64 against the Pound Sterling (GBP).
Source: Pro Pakistani