Islamabad, August 8:The Pakistani rupee ended Friday in a mixed position—posting modest gains against the US dollar, while declining significantly against the British pound and other major currencies.
While official data portrays a stable PKR, the open market’s lower rates (e.g., Rs312 vs. interbank averages) raise questions about underreported depreciation or manipulation. The government’s recent push for digital transactions (e.g., Raast QR mandate) and tax enforcement (FBR’s online sales tax) aims to boost revenue, but their impact on currency stability remains untested.
Skeptics argue that reliance on IMF loans and domestic political uncertainty—evident in privatization plans and asset recovery drives—could erode confidence, potentially weakening the PKR further against the Euro in the coming months.
Market Performance
- Against the US Dollar:
The rupee advanced slightly, gaining 8 paisas to settle at Rs 282.46 per USD in the interbank market, marking a second consecutive day of strength. - Against the British Pound:
The rupee weakened notably, with open-market rates trading between Rs 379 to Rs 384 per GBP, and some sellers quoting as high as Rs 384. - Other Major Currencies:
Friday’s session saw modest appreciation against several currencies:
– UAE Dirham (AED): gained 2 paisas
– Saudi Riyal (SAR): gained 2 paisas
– Canadian Dollar (CAD): gained 17 paisas
– Australian Dollar (AUD): gained 17 paisas
– Euro (EUR): gained 93 paisas
READ MORE:Rupee Falls Against US Dollar, Most Major Currencies
What’s Driving the Dynamics?
1. Government Stabilization Efforts
The rupee’s slight gain against the dollar is widely attributed to coordinated intervention by state-run banks. These market operations appear aimed at maintaining stability amid volatile external pressures.
2. Pound’s Global Resilience
The steep drop against the pound reflects sterling’s global strength and higher demand in import markets. It may also underscore the rupee’s vulnerability to global currency shifts and external imbalances.
3. Uneven Resilience Across Currency Basket
The mixed performance highlights that while the rupee can hold ground briefly against the dollar, it remains sensitive—especially versus currencies showing broader international strength.
