PKR appreciates by 1.18 rupees in early trade after PM removed

April 11, 2022 (MLN): Following increasing clarity on the domestic political landscape, the Pakistani Rupee (PKR) depicted a bullish trend against the dollar, appreciating by Rs1.18 in the interbank market on Monday.

The dollar was quoted at 183.51/ 184.01 (10:45 PST) when compared to the previous close of Rs184.68.

To recall, Pakistan's lower house of parliament ousted Imran Khan from the premiership in a no-confidence vote in the early hours of Sunday, following which PML-N President Shahbaz Sharif seems all set to be elected as the new prime minister in National Assembly’s session today.

On Friday, the domestic unit snapped its long losing streak wherein it recovered by 3.5 rupees against the greenback in the interbank session.

According to Asad Rizvi, the former treasury head Chase-Manhattan Bank said, "Today could be a tough day for PKR and it needs monitoring that may help."

There is a lot of discussion about the Roshan Digital Account (RDA) outflow. A small amount of outflow is a possibility due to the option available to break the placement.  However, at this point, our economy cannot afford a slowdown, he noted.

On the economic front, Pakistan will have to pay $2.5bn on account of external debt servicing in the last quarter of FY22. These payments are likely to put pressure on PKR against the greenback in the coming days, a research note by Ismail Iqbal Securities said.

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