PKR recovers by 2.33 rupees in early trade

June 08, 2022 (MLN): After three days of losing streak, the Pakistani Rupee (PKR) rebounded on Wednesday, gaining 2.33 rupee against the US dollar in the inter-bank market in early trade.

The dollar was quoted at 200/ 200.5 (10:03 PST) when compared to the all-time low of 202.83 reported yesterday.

This appreciation might be due to the State Bank meeting with commercial banks on exchange rate destabilization, according to analysts.

In its downward journey this fiscal year, the rupee has been facing sharp fluctuations, providing enough room for speculators to maximize their benefits, said Zafar Paracha, President of Exchange Companies Association of Pakistan (ECAP) to Mettis Global.

Yesterday, after opening at 201, the local unit hit an intraday new low of 203.70 and closed at 202.83.

The key is the IMF revival of the Extended Fund Facility (EFF), said Asad Rizvi, the former Treasury Head at Chase Manhattan Bank on Twitter.

“Higher oil prices, which is purchased on cash & the size of ticket that surged from $22mn to $70mn hurts.”

Managing outflow is the real challenge, he noted.

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