PKR appreciates by Rs1.74 in interbank as export proceeds flow in

The rupee, which recently hit a record low, appreciated by Rs1.74 against the US dollar in the interbank market on Tuesday. The local currency closed at Rs267.89, up 0.65 per cent from yesterday’s close of Rs269.63. Tresmark’s Head of Strategy Komal Mansoor said the rupee’s appreciation could be attributed to exporters offloading some of their proceeds. Alpha Beta Core CEO Khurram Schehzad said it appeared that remittances and export proceeds had started pouring in days after the government removed an unofficial cap on the USD-PKR exchange rate. The International Monetary Fund (IMF) delegation’s arrival in the country for discussions on the ninth review may also have restored some confidence, he added. The rupee had depreciated by Rs24.54 in the interbank market on Thursday after the government removed the price cap. It was the largest single-day depreciation in both absolute and percentage terms since the new exchange rate system was introduced in 1999, according to Ismail Iqbal Securities. The PKR lost Rs38.74 between Jan 26-30, with analysts terming the slide a “much-needed adjustment”. The removal of the cap resulted in the interbank and open markets aligning more closely, with currency dealers now expecting a black market in dollars to eventually dry up.