PKR on track to end 13-day losing streak against USD

November 10, 2023 (MLN): The Pakistani Rupee (PKR) is on track to conclude its 13-day-long losing streak against the U.S. Dollar as the local unit gained 50 paisa during intraday trade.

The local unit was quoted at PKR 286.5/287.49 [10:12 am PST] with the trades being reported at 286.4 per USD.

The open market rates for the respective period show that the local unit has gained 50 paisa in comparison to its previous closing of 286.3 for buying and 286.5 for selling.

The positive sentiment is attributed to the latest Workers' remittances data released by the central bank today, which showed that the remittances have increased by 11.54% MoM in October to $2.46 billion.

The local unit faced pressure for 13 consecutive days due to the mismatch between demand and supply for dollars.

The easing of trade restrictions, as per the International Monetary Fund's (IMF) conditions for the Standby Agreement, led to increased demand for dollars, putting pressure on the local currency.

It is important to mention that Pakistan's trade deficit for the month of October widened by over 38% MoM to $2.099 billion compared to a deficit of $1.518bn from the previous month.

According to Goldman Sachs's analyst, the performance of the local currency has concluded in the backdrop of financing risks and the upcoming elections.

It is important to mention that in a recent development, the review mission of the International Monetary Fund (IMF) last week appreciated Pakistan's government to meet the targets set by the fund for the first quarter of the fiscal year 2023-24. 

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