September 16, 2021 (MLN): The Pakistani Rupee (PKR) broke its recent downtrend in the early trading session Thursday, appreciating by over Rs1.13 against the US dollar in the interbank market.
The dollar was being quoted (10:52 PST) at 167.85/167.95 compared to the previous day’s close of 169.116 against the greenback, an all-time low.
The rupee plunged on Wednesday by 17 paisa, hitting at 169.55 to a dollar — the lowest ever against the greenback.
While talking to a media house, Dr. Murtaza Syed, Deputy Governor State Bank of Pakistan said the central bank would not allow speculation.
Dy Governor warned speculators in the forex market. He said that SBP has more reserves and speculators will lose once currency changes direction, Ali Khizar, Economist said through his Twitter handle.
“SBP prohibits free movement of currencies and due to regular reporting & better control of the central bank, exchange companies have no room to maneuver,” Asad Rizvi, the Former Treasury Head at Chase Manhattan said.
In a series of tweets, he wrote, “SBP monitors Banks' NOP limits on a daily basis. Exporters can hold proceed due to a one-way PKR move. Who else is speculating? It's a common query as can only keep a track of documented transactions.”
SBP is not intervening in the market. They provide funds directly, which is called sterilization, he added.
