Rupee Gains Big Against the US Dollar for Second Consecutive Day

The Pakistani Rupee appreciated against the US Dollar for the second consecutive day. It gained 34 paisas against the US Dollar and closed at 170.53 today. It appreciated by nine paisas against the US Dollar (USD) yesterday after slipping to a record low of 170.96 on Wednesday. The local currency’s increase in value came after the State Bank of Pakistan imposed restrictions on individuals and currency exchange companies on Thursday to control the outflow of dollars and other foreign currencies to Afghanistan. The flight of dollars from Pakistan to Afghanistan is one of the reasons why the Pakistani Rupee (PKR) depreciated against the USD over the last few months. The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said that the Rupee has been trading within the range of 170.50 and 171 against the USD. Remittances also contributed to the rupee surge which offered an impressive hedge against the rising import bills of Pakistan. Inflows stood at a level of $2.7 billion in the month of September 2021, up by 16.9 percent on a year-on-year basis and 0.5 percent on a month-on-month basis in the same month. Cumulatively, remittances grew by 12.5 percent, retaining shape at a resounding $8 billion during the first quarter of the fiscal year 2021-2022 over the same period last year. This is one of the highest ever inflows of remittances recorded in a single quarter. The PKR gained against other major currencies today as well. It added 81 paisas against the Euro, 54 paisas against the Pound Sterling (GBP), 35 paisas against the Australian Dollar (AUD), and two paisas against the Canadian Dollar (CAD). It also gained nine paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).