pkr gains today Rs1.5 against dollar in interbank

On Monday, the rupee continued to rise after recovering by 4% the previous week.

(Infosette News) The pkr gains today Rs1.51 or 0.71 percent to settle at Rs213.98 to the dollar, according to the State Bank of Pakistan (SBP).

Forex Association of Pakistan (FAP) Chairperson Malik Bostan attributed the rupee’s surge to the International Monetary Fund’s (IMF) letter of intent and reports of aid from friendly countries, particularly Saudi Arabia.

He stated that the market expected the IMF payment to be received soon, increasing the country’s foreign reserves.

According to the FAP chairperson, the genuine value of the dollar is between 190 and 200, but speculators have “artificially boosted it due to economic concerns and the fear of default.” He did, however, add that the dollar would soon return to its true value.

Mettis Global Director Saad bin Naseer stated that the local currency had surged because dollars were streaming into the country, and that more inflows were expected.

Exporters who had been hoarding their dollars outside were also bringing them into Pakistan earlier because the greenback was weakening rapidly, he noted.

Naseer stated that there was “pressure” because exporters approached the government and other authorities to push them to stabilise the currency rate because they were losing money. “However, this will always happen. The greatest idea is that the dollars be changed into rupees on the same day that the export [consignment] is sent, and that the government and banks sign a memorandum of understanding to resolve the uncertainty.”

He also stated that if the political environment remained stable, the rupee will continue to rise and gain in the following days.

“This week’s start has been excellent. Positive news is flowing from every direction, and sentiments have shifted,” said Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (Ecap).

He went on to say that, as a result of the favourable events, exporters who had previously held onto dollars were looking to sell them, while importers were waiting for the greenback to fall even more.

According to Paracha, there have been rumours that Saudi Arabia may roll over a $3 billion loan and give oil on deferred payments, while the IMF tranche will be received soon, which is why the PKR is recovering.

Overseas Pakistanis and exchange companies, he claimed, had played a critical role in the rupee’s revival. The Ecap secretary general proposed providing incentives and rebates to overseas Pakistanis and exchange companies, as well as recognising them as a “export industry.”

According to Tresmark’s Head of Research, Komal Mansoor, the market is optimistic that the IMF tranche will be received before the end of the month. “Weak demand for the greenback, bolstered further by falling oil prices, political stability, and lessening of US inflationary pressures, is also adding support to the [exchange rate].”

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