PKR gains 7 paisa, continues trading in tight range against USD

KARACHI: The Pakistani rupee (PKR), on the second-to-last trading day of the week, maintained its trend of trading in a tight range against the US dollar (USD).

The PKR rose marginally by 0.03 per cent, or 7 paisa, against the greenback and was recorded at Rs277.85 per dollar during the initial trading hours on Thursday.

On the previous trading day, the PKR dropped 0.02 per cent, or 5.41 paisa, against the USD in Wednesday’s interbank session, ending the trade at Rs277.92 per USD compared to Tuesday’s closing rate of Rs277.87.

In the current financial year, the Pakistani currency has appreciated by 0.15 per cent, or 41.84 paisa, against the USD. The PKR has gained 1.42 per cent, or Rs3.94, against the US dollar since the start of 2024.

Performance against other foreign currencies on the previous trading day:

Euro: The local currency declined by 0.06 per cent, or 16.81 paisa, against the Euro, closing at Rs292.14.

Chinese Yuan: The PKR decreased by 6.02 paisa, or 0.16 per cent, against the Chinese Yuan to close at Rs38.21, down from Rs38.15.

UAE Dirham: The PKR depreciated by 0.02 per cent, or 1.68 paisa, against the UAE Dirham to close at Rs75.67.

Swiss Franc: The PKR depreciated by 0.05 per cent, or 16.71 paisa, against the Swiss Franc to close at Rs313.49.

British Pound: The PKR weakened by 51.32 paisa, or 0.15 per cent, to Rs352.71 against the British Pound.

Saudi Riyal: The PKR weakened by 0.95 paisa, or 0.01 per cent, against the Saudi Riyal to Rs73.96.

Japanese Yen: The PKR rose by 0.39 paisa, or 0.21 per cent, to close the trade at Rs1.8465 against the Japanese Yen.

Previous USD to PKR closings:

December 2: The PKR increased by 0.03 per cent, or 7.65 paisa, against the USD to end the day at Rs277.97 per USD, compared to the last closing of Rs278.05.

December 3: The PKR increased by 10.48 paisa, or 0.04 per cent, against the USD to settle the trade at Rs277.87 per USD, compared to the last closing of Rs277.97.

December 4: The PKR fell by 5.41 paisa, or 0.02 per cent, against the USD in Wednesday’s interbank session, settling the trade at Rs277.92 per USD, compared to the last closing of Rs277.87.

IMF condition kept dollar overvalued by 24 per cent in Pakistan, claims tax firm

The International Monetary Fund’s (IMF) condition of a market-based exchange rate for the past over two years has kept the US dollar overvalued by at least one-fourth, or Rs67, which also contributed to higher inflation and interest payments, a tax advisory firm claimed.

According to Express Tribune, it argued that in the absence of the IMF condition, the average rupee-dollar parity would have been Rs211.5 by the end of October. If it is proven correct, it means that the average rupee value is currently weaker by around Rs67, or 24 per cent.

However, the central bank, which is responsible under the law for managing the exchange rate regime, has long been saying that the current rupee-dollar parity is in line with market expectations.

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