After losing 14 paisas against the US Dollar on Monday and another 35 paisas on Tuesday, PKR finally managed to reverse the trend today with a minor gain of 3 paisas.
The third trading day of the first week of 2021 saw the Pakistani Rupee’s exchange rate slightly improve against the US Dollar, where PKR closed at Rs. 160.29 on Wednesday (January 6) against the USD as compared to Rs. 160.32 on Tuesday, which was down from 159.97 on Monday.
Against all other major currencies, however, PKR deteriorated on Wednesday.
PKR lost 90 paisas to the Euro, 99 paisas to the GBP, approximately Rs. 1.2 to the Australian Dollar, and 80 paisas to the Canadian Dollar. The only other gain besides USD that the PKR saw in the interbank market today was against UAE Dirham and Saudi Riyal. PKR posted a negligible gain of less than a paisa gain against AED and 1 paisa against SAR.
The Pakistani Rupee had a volatile 2020 after starting the year at Rs. 154.8795 against the US Dollar. The local currency ended the year at Rs. 159.83 against the greenback after touching an all-time low of Rs. 168.43 during the year.
Managing Director at Khadim Ali Shah Bukhari Securities, A.A.H Soomro, expects a steady rate till May-June of 2021. He predicted the parity to stay around Rs. 164-165 level as low oil prices, higher remittances, and the COVID-19 induced Current Account savings would keep the foreign exchange reserves and the Rupee with a comfortable margin.