November 2, 2021 (MLN): Since the announcement package by Saudi Arabia, the Pakistani Rupee (PKR) continued its good run as it has advanced by Rs1.04 against US Dollar in an intraday trade at the interbank market amid improved macroeconomic indicators.
The dollar was being quoted at 170.25/170.32 (11:19 PST) when compared to the previous close of Rs171.29.
The domestic currency has started to gain its ground due to the announcement of $4.2 billion financial support by Saudi Arabia, after sweeping losses for more than two months.
In his morning tweet, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank said, “Saudi facility to Pakistan was provided from its Special Drawing Rights (SDR) allocated funds.
Its quota was increased to 9577.5mn & is allowed to lend excess funds. This means the facility is conditional that may need a few more adjustments. PKR will stabilize while the rate hike is on cards, he noted.
Moreover, this PKR run was also supported by the 10% MoM decline in trade deficit in Oct-21 that recorded at $3.7bn.
