October 27, 2021 (MLN): After the announcement of Saudi support of $4.2billion, the Pakistani Rupee (PKR) has appreciated by Rs2.27 (12:25 PST) against the US Dollar (USD) in an intraday trade on Wednesday at the interbank market.
The dollar is currently being quoted at 173.00/173.11 when compared to the previous close of Rs175.27, an all-time low.
Snapping the losing streak, the domestic unit finally managed to recover some lost ground following the announcement of the Saudi government to provide financial support of $4.2 billion to Pakistan to help ease pressure on trade and increase foreign currency reserves.
The financial assistance includes a $3bn deposit in the State Bank of Pakistan while $1.2bn to finance the oil derivative trade throughout the year.
Most likely, this development will help ease pressure on the rupee in the days to come.
Commenting on the same, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank said, “Saudi Arabia agreed to provide $ 1.2bn Oil on deferred payment & cash deposit of $3bn. While the REER index fell for 4th consecutive months to hit 95.9 that supports stronger PKR. And with IMF money in the pipeline, the rupee should take a breather.”
