Intraday Report: PKR rides high

February 04, 2022 (MLN): Following the approval of the IMF tranche, the Pakistani Rupee (PKR) depicted a bullish trend against the dollar, appreciating by Rs1.63 in the interbank market today.

The dollar was being quoted at 174.78/ 174.88 (10:34 PST) when compared to the previous close of Rs176.41.

Positive sentiments in the market were stemmed from Prime Minister's visit to China which has also helped strengthen the domestic currency.

Asad Rizvi, the former Treasury Head at Chase Manhattan said in a morning Tweet, "A strong opening of PKR is expected, as several factors are supporting Rupee. PM Imran Khan’s China visit should help."

But it is too early to tell if the trend is sustainable beyond the near term or not, he added.

"IMF's revival is very encouraging as it would bring stability in economy and currency. This approval indicates that IMF agrees to our economic strategy," said Finance Minister Shaukat Tarin in a video message before leaving for China.

It is pertinent to note that the liquid foreign exchange continued to witness a decline and reached $22bn this week, however, the performance of other macros has offset this impact.

Copyright Mettis Link News