Pakistani Rupee crumbles against US dollar, loses Rs1.27 in interbank trade

In less than 24 hours, despite the IMF and Chinese loan facility agreement, Pakistani Rupee yet again crumbled on Friday and lost Rs1.27 against US dollar.

In the interbank trading, the US regained its strength and appreciated by Rs1.27 to reach at Rs208.50.

The local currency gained Rs4.70 Thursday and greenback settled for Rs207.23 at closing time in interbank trading.

Mettis Global Director Saad Bin Naseer stated that the rupee’s correction was “long due”.

“With news of foreign exchange inflows from China and an imminent deal with the International Monetary Fund (IMF), we believe the rupee will gain strength in the coming sessions,” he told Dawn.com.

“As inflows rise, we expect exporters — who have been holding their earnings abroad — will panic and remit their earnings back in view of the appreciation in rupee’s value against the dollar,” he added.

Komal Mansoor, head of research at Tresmark, said market sentiment had taken a U-turn on the “influx of positive news”.

“Exporters have also started selling dollars in spot and forwards. A gradual strengthening of the rupee will encourage them to sell more, thereby improving liquidity position,” she said.