Intraday trading: PKR continues to gain against USD

KARACHI: The Pakistani rupee (PKR) continued to improve against the US dollar (USD), gaining 0.09 per cent in the inter-bank market on Thursday.

Early in the day, the PKR was trading at 277.78, showing an increase of 0.26 paisa against the USD. The day before, the rupee had settled at 278.04, as reported by the State Bank of Pakistan (SBP).

So far this financial year, the PKR has appreciated by 29.89 paisa or 0.11 per cent against the US dollar. Since the start of the calendar year, the rupee has gained 3.82 rupees or 1.37 per cent in value.

The currency market is now looking ahead to the International Monetary Fund (IMF) Executive Board meeting on September 25, where Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion will be discussed.

Globally, the US dollar rose broadly on Thursday, bouncing back from an earlier drop after the Federal Reserve announced a ‘bigger-than-expected’ interest rate cut, which had already been anticipated by markets.

Here’s how the PKR performed against major foreign currencies on the last trading day (Wednesday):

– The PKR gained 8.47 paisa against US dollar on Wednesday and closed the trading session at 278.04 per USD, compared to previous closing of 278.13 on Monday.

– The British Pound became more expensive by 38.88 paisa, closing at 366.97 compared to 366.59 the day before.

– The PKR lost 18.38 paisa against the Euro, closing at 309.47 compared to 309.29 the previous day.

– The UAE Dirham saw a slight decrease in value by 2.31 paisa, dropping from 75.7 to 75.72.

– The Swiss Franc lost 25.64 paisa, closing at 329.18 compared to 329.44.

– Against the Japanese Yen, the PKR gained 2.88 paisa, closing at 1.9592 from 1.988 the day before.

– The Saudi Riyal fell by 2.85 paisa, closing at 74.08 from 74.11 the previous day.

– The Chinese Yuan gained 0.35 paisa, closing at 39.21 from 39.21.

Furthermore, on Wednesday, the US central bank began its monetary easing cycle by cutting interest rates by half a percentage point, a larger-than-usual move.

Chair Jerome Powell stated that the reduction was meant to show that policymakers are committed to keeping unemployment low, now that inflation is under control.

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