After starting the day at 286 to the US dollar on the interbank market, the Pakistani rupee has strengthened during intraday trade. As of 12 PM, it was bullish, having gained 3.9 Rs to a high of 283. After that, it fell to 287 between 12:30 and 1:15, where it lingered for a while before recovering to 286.
Multiple currency counters showed an increase in open market rates to the 291–294 level.
The Pakistani Rupee gained 23 paisas, or 0.08 percent, against the US dollar by market close. The first floating exchange rate was somewhere between 296 and 300. Many stations (unverified) quoted rates as high as 304 for today’s cash rate per dollar in Hundi.
There has been a lack of demand for the US dollar at currency exchanges since Wednesday, which may explain today’s gains. A trader commented that the momentary calm was appreciated, but that the PKR is expected to continue its erratic movement in the coming weeks. “300 is the target, 295 is resistance,” one of them said.
According to figures provided by the State Bank of Pakistan (SBP) on Thursday, the country’s foreign exchange reserves fell slightly week over week. On July 27 the SBP’s foreign currency reserves were valued at $8.153 billion, down $32 million from its previous valuation of $8.186 billion on July 21. The government bank issued a statement blaming debt obligations for the drop.
The value of the rupee has decreased by about 63 rupees from January of 2023. It has lost roughly Rs. 113 against the dollar since April 2022. Today’s fluctuations in the value of the PKR relative to the USD show that the currency has appreciated by 23 paisas.
On a worldwide scale, the US dollar fell on Thursday but recovered today. On Thursday, the USD Index, which tracks the dollar’s value relative to a basket of six major currencies, peaked at over 102.80 during the European trading session before retracing to approximately 102.50.
The US jobs report for July will be eagerly watched by market participants before the weekend. A rise of around 200 thousand in nonfarm payrolls is anticipated. The unemployment rate is forecast to hold steady at 3.6%, while annual wage inflation slows to 4.2% from June’s 4.4%. The labor market report in the American session may affect the USD’s value because of its potential effect on the Federal Reserve’s policy stance.
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