Pakistani rupee going strong and stable

Muscat: The value of Pakistani rupee (PKR) has managed to remain stable and is predicted to hold strong in the coming days against the US dollar (USD) and Omani rial (OMR).
The currency, which stood at PKR163.75 for every USD and PKR425.30 against OMR in June 2019, started to gain momentum and hovered around PKR157-PKR160 against the USD and between PKR405-415 against OMR in the months of September-November, 2019. It is currently trading at PKR155 against the USD and PKR402 as of January 7, 2020.
The improvement in the currency began to appear towards the end of 2019. It is expected that the PKR is likely to maintain the value and peak out at around 150 to the US dollar over the coming months.
Talking to the Times of Oman, R Madhusudhan, CEO of Global Money Exchange, said that the PKR is not facing much volatility in the market and is likely to maintain the level.
“We can’t see much volatility in the market against the PKR mainly because of Pakistan Central Bank’s intervention as they are trying to control the value of the currency after it depreciated and reached its all-time low against the USD and OMR.
“It is currently trading at PKR402 against every single OMR and PKR155 against the USD,” Madhusudhan said.
He continued saying, “One of the few reasons for a currency to appreciate or depreciate, especially the ones that belong to the developing economies, is due to the fluctuation in the oil prices, and government intervention. Any impact on the oil prices are shown on the value of the currencies of the developing nations.
“Rise in oil prices certainly has a negative impact on the trade deficit on the oil importing countries and also puts an inflationary pressure domestically. Therefore, the challenge of the government is to maintain balance between inflation and economic growth.”
He added that the PKR is likely to maintain the level of its value and will be seen hovering between PKR402-405 against the OMR in the medium term.
Another expert from an exchange house in the Sultanate also agreed to the same. P K Subudhi, the General Manager at Mustafa Sultan Exchange predicted that the PKR is likely to stay stable in the coming days. “PKR is hovering around 402 against a single OMR since last one month. We can see that the currency is holding onto the stability and is likely to remain the same in future,” Subudhi said.