Rupee Holds Steady Against US Dollar, Gains Big Against Other Currencies

So far, it has lost 13.01 percent on a fiscal-year-to-date basis after dropping to another record low on Friday, besides depreciating by 11.39 percent on a calendar-year-to-date basis. Several financial factors and accompanying inflationary pressures have limited the rupee’s ability to settle at comfortable levels. Resultantly, today’s holdout gives the exchange ledger some respite as the focus progressively switches to the resolution of the mini-budget scheduled for 22 December. This instrument, which is valued over Rs. 550 billion, is likely to help the local currency weather the storm of inflationary pressures and may offer clarity on how the local currency will fare in the face of near-term economic uncertainties. Moreover, the State Bank of Pakistan (SBP) has updated the regulations governing how exchange companies sell foreign exchange to individuals in order to reinforce the local unit and curb the rising import bills. This step, which is in continuation of the other measures being taken by SBP, is aimed primarily at discouraging the speculative buying and selling of foreign exchange from the exchange companies without affecting the market’s ability to serve the genuine needs of the public. In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted: The PKR reversed its declining trend against other major currencies in an impressive highlight of encouraging gains. It posted big gains of Rs. 1.80 against the Pound Sterling (GBP), Rs. 1.45 against the Canadian Dollar (CAD), and Rs. 1.09 against the Euro (EUR). It also posted a blanket gain of one paisa against the Saudi Riyal (SAR) and held out against the UAE Dirham (AED) in today’s interbank currency market. Moreover, the rupee appreciated against the Australian Dollar (AUD) and posted gains of Rs. 1.26 in today’s interbank currency market.