Rupee Hits Nearly 2 Years High Against US Dollar

The Pakistan Rupee (PKR) continued its upward journey against the US Dollar (USD) throughout this week in the interbank market. This marks the eighth consecutive day of improvement for the rupee against the greenback. The rupee gained 32 paisas against the USD in the interbank currency market today, closing at Rs. 152.27 to the USD at the end of the trading day today (Friday, 7 May) compared to Rs. 153.59 to the USD on Thursday (6 May). This marks a 23-month high for PKR against the USD since PKR traded at this exchange rate in June 2019. On a week to day basis and on a month to date basis, PKR improved 0.77 percent against the greenback this week, according to the financial analytics platform Capital Stake. On a year-to-date basis, PKR has posted an appreciation of 4.73 percent. Financial consultant and journalist Ali Khizar said about the PKR’s movement on Friday, “The better inflows are driving currency appreciation”. These inflows comprise of remittances, charity, inflows from Roshan Digital Accounts (RDAs) etc. He wrote, “Issuance of euro bond, growing NPCs and not passing IMF conditions of power tariffs and taxes under new [finance minister] are making bond yields to fall. It’s good for speeding economic recovery and stock/real estate [markets]”. ALSO READ Rupee Continues Upward Journey Against US Dollar According to a dealer, the rupee is appreciating due to inflows of Eid-related remittances. He said overseas Pakistanis usually send money to their relatives for Eid celebrations. The financial markets will remain closed from May 10 to 15, 2021 on account of the Eid holidays. Against other major currencies, the Pakistani Rupee saw mixed results in the interbank currency market. ALSO READ Rupee Improves Against Dollar for 6th Consecutive Day Against the Pound Sterling (GBP), however, PKR posted a gain of 27 paisas. PKR also posted gains of 8 paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in the interbank market today.