The Pakistani rupee strengthened against the US dollar for the second day in a row on Thursday, finishing at 172.26 in the interbank market.
In intraday trade, the rupee rose as high as 171.5, but the gains were short-lived. The rupee finished the day with a gain of 0.3 percent, or 52 paisas, against the US dollar, according to the State Bank of Pakistan (SBP).
The pause comes after the currency’s greatest day-on-day gain in absolute terms since April 2020, when it finished at 172.78 on Wednesday.
Back-to-back advances, on the other hand, come after the rupee fell to its lowest level on Tuesday, when it ended above the 175 level in the interbank market for the first time.
The rebound follows Saudi Arabia’s pledge of a $4.2-billion financial aid package for Pakistan.
On Tuesday night, the Saudi Fund for Development (SFD) announced the issuance of a Royal Directive to deposit $3 billion in Pakistan’s central bank, “to assist the Pakistani government in maintaining its foreign currency reserves and dealing with the effects of the coronavirus pandemic,” according to a statement released by the Saudi Press Agency (SPA).
The royal instruction was also given, according to the SFD, to fund the oil futures trade with a total sum of $1.2 billion over the course of the year.
Since May of this year, Pakistan’s currency has been under pressure as a rising current account deficit, heavy imports, and the unpredictable situation in Afghanistan all taken their toll.
Thursday’s dollar interbank market rates
BID 172.26 Rupees
172.36 RUPEES OFFER
Movement on the open market
The PKR gained 1.20 rupees on the open market for both purchasing and selling versus the US dollar, finishing at 172.10 and 173, respectively
The PKR gained one rupee while purchasing and 1.10 rupees when selling against the Euro, finishing at 199.50 and 201.40, respectively.
The PKR gained 20 paisas for purchasing and 25 paisas for selling against the UAE Dirham, finishing at 48.60 and 49, respectively.
The PKR gained 20 paisas against the Saudi Riyal on both purchasing and selling, finishing at 45.60 and 46.05, respectively.