Rupee Ends Dramatic Week With Gains Against US Dollar Despite SBP Reserves Drop

The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and posted gains in the interbank market today. It gained 11 paisas against the greenback after hitting an intra-day low of Rs. 179.25 against the USD during today’s open market session. It appreciated by 0.07 percent against the USD and closed at Rs. 178.51 today after maintaining pivot at 178.63 in the interbank market on Thursday, 10 March. The rupee closed in green against the dollar today despite a staggering $250 million decline in foreign reserves held by the State Bank of Pakistan (SBP). The central bank’s weekly report released on Thursday revealed that the country’s total liquid foreign exchange reserves went down by $206.4 million on March 4, 2022, to $22.87 billion, compared to $22.66 billion in the previous week. SBP’s reserves decreased to $16.21 billion, compared to $16.46 billion a week earlier. Net reserves held by the commercial banks stood at $6.4 billion, depicting an increase of $43.7 million on a weekly basis. Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that due to a massive surge in oil bills, Pakistan’s net reserves with SBP decreased by $250 million to $16.212 billion. On the flip side, the increase in remittances is encouraging. In February, it increased by $2.19 billion, bringing the total inflows in the previous eight months to 20.1 billion. It is expected to exceed $30 billion by the conclusion of the end of the current fiscal year. The PKR reversed losses against most of the other major currencies and reported gains in the interbank currency market today. It gained three paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), Rs. 1.28 against the Euro (EUR), and Rs. 1.92 against the Pound Sterling (GBP). Conversely, it lost one paisa against the Australian Dollar (AUD) and 28 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.