Rupee Maintains Position Against the US Dollar as Markets Calm Following SBP Warning
The Pakistani rupee (PKR) depreciated by one paisa against the US dollar (USD) on Friday to close at 168.19.
Yesterday, it recovered from the record low of September 15 and gained 94 paisas in the inter-bank market to close at Rs. 168.18.
On September 15, the PKR slid to its lowest against the USD ever, at Rs. 169.12.
The local currency has been depreciating steadily over the past months, but the State Bank of Pakistan (SBP) Deputy Governor’s comments on September 15 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.
An analysis by Business Recorder pointed out that both macroeconomic fundamentals and market sentiment affect the exchange rate.
Thus the SBP should not be held responsible for exchange rate movement, the report argued, as it can only step in to ease volatility.
Regarding the PKR’s 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.”
“A coordinated effort by the finance ministry and SBP needs to be in place to curb demand,” the analysis recommended, in order to stabilize the exchange rate in the long run.
Capital Stakes said that the PKR had depreciated 0.1 percent over the past week, 1.08 percent over the past month, and 5.23 percent over the past year.
The local currency lost 6 paisas against the Euro, 3 paisas against the Canadian Dollar (CAD), and 10 paisas against the Australian Dollar (AUD).
It also depreciated by 0.1 percent each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED), respectively.
In contrast, it gained 18 paisas against the Pound Sterling (GBP).
Source: Pro Pakistani