Exchange Market calm after SBP warning

State Bank Official warned spectaculars yesterday in a TV show.

Lahore ( 17 Sep 2021): The Pakistani rupee (PKR) depreciated by one paisa against the United States dollar (USD) yesterday and closed at 168.19.

Yesterday, the Pakistani Rupee recovered from the record low of September 15 and gained 94 paisas in the inter-bank and open market to close at Rs. 168.19.

The Pakistani Rupee slid to its lowest against the USD ever, at Rs. 169.12 on 15 September.

The PKR has been depreciating steadily over the past few months, but the State Bank of Pakistan’s Deputy Governor comments in Dunya Kamran Khan K Sath Show on 15th September managed to arrest its fall yesterday.

“If some people start speculating, they must remember that they will be the losers at the end of the day,” he warned, adding that the SBP would take action to prevent panic in the foreign exchange market.

 

The Business Recorder analyst briefed that both macroeconomic fundamentals and market sentiment affect the exchange rate.

Thus the State Bank of Pakistan should not be held responsible for changing the exchange rate, the report of the business recorder argued, as it can only step in to ease volatility.

Regarding the local currency value in the near future, Business Recorder said, “Market participants are of the view that this may ease the market for the next week or two at most.”

The PKR lost six paisas against the Euro, Three paisas against the Canadian Dollar, and ten paisas against the Australian Dollar.

It also lost 0.1 percent each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED), respectively.

 

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