Pakistan’s rupee rallied on Friday after sliding the day before, strengthening 0.13 percent versus the US dollar in the interbank market.
The rupee ended the day at 185.63, up 24 paisas, or 0.13 percent, according to the State Bank of Pakistan (SBP). After a 0.23 percent decline on Thursday, the rupee finished at 185.87.
— SBP (@StateBank_Pak) April 29, 2022
Fears of a Russian supply interruption overshadowed Covid-19 lockdowns in China, the world’s largest petroleum importer, as oil prices surged for a fourth day on Friday.
According to Pak-Kuwait Investment Company’s Head of Research Samiullah Tariq, the upswing is a pre-holiday impact, as the flow of remittances often increases shortly before Eid, providing support to the local currency.
“Overseas Pakistanis bring their money home to their family for Eid expenses,” he explained.
He predicted that the local currency would strengthen versus the US dollar, but that clarity on the market’s overall trend would only come after the holidays.
According to an analysis by Arif Habib Limited, the Russia-Ukraine crisis has the potential to spur capital flight from developing countries to safe havens, thus lowering the Pakistani rupee further.
“The current account deficit is having a fundamental influence on the currency,” according to the paper, “which, from a flows perspective, would prevent foreign exchange from returning to pre-pandemic levels.”
Pakistan’s foreign exchange reserves fell further on Thursday, with the SBP-held figure hitting $10.56 billion. According to the SBP, the country’s total liquid foreign reserves were $16.67 billion on April 23, 2022.
Inter-bank market rates for dollar on Friday
BID Rs 185.50
OFFER Rs 185.60
The PKR gained 25 paisas for purchasing and remained steady for selling versus the US dollar in the open market, finishing at 185.75 and 187, respectively.
The PKR gained 90 paisas for purchasing and one rupee for selling against the Euro, finishing at 194.10 and 196, respectively, for buying and selling.
The PKR dropped 20 paisas in both purchasing and selling against the UAE Dirham, finishing at 50.40 and 50.90, respectively.
The PKR gained 8 paisas for purchasing and remained steady for selling against the Saudi Riyal, finishing at 48.82 and 49.30, respectively.
Open-market rates for dollar on Friday
BID 185.75 Rupees
187 RUPEES OFFER