US Dollar falls by 26 paisas to PKR 221.66 in interbank market

KARACHI: The US Dollar fell by 26 paisas against the Pakistani Rupee (PKR) on Monday to end at PKR 221.26 in interbank foreign exchange market.

The exchange rate witnessed a recovery of 26 paisas in the rupee value to end PKR 221.26 from last Friday’s closing of PKR 221.92 in interbank foreign exchange market.

Currency market opened with the stable currency rate because of positive sentiments prevailed during the day. The last closing on Friday November 04, 2022 witnessed volatile trading because of an attack on former Prime Minister Imran Khan. The political instability kept the pressure. However, the reports that the State Bank of Pakistan (SBP) had allowed the exchange companies to retain 20 per cent of the workers’ remittances helped the market sentiments to improve.

Besides, latest data showed improvement in foreign exchange reserves position.

Pakistan foreign exchange reserves have increased by $1.527 billion to $14.69 billion by week ended October 28, 2022 after transfer of funds from Asian Development Bank (ADB).

The country’s foreign exchange reserves increased to $14.689 billion by week ended October 28, 2022 as compared with $13.162 billion a week ago i.e. October 21, 2022.

The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.539 billion.

The official foreign exchange reserves of the State Bank also increased by $1.473 billion to $8.913 billion by week ended October 28, 2022 when compared with $7.44 billion a week ago.

Currency experts said that the dollar witnessed appreciation globally following a sharp rise in treasury yields after the Federal Reserve signaled the interest rates would likely spike.

The Fed earlier raised its benchmark funds rate by 75 basis points to 3.75-4 per cent as widely expected.