Pakistan rupee sticks to 50+ levels against dirham, setting up a remittance windfall for country's expats

Dubai: The Pakistan Rupee is stuck at 50 plus levels to the dirham after dropping to a new low late on Thursday (March 31) as the currency markets took stock of the political developments.

On Friday, the PKR is in the 50.10-50.30 range to one dirham, and currency traders expect some sizeable remittance activity to kick off in the next 48 hours, more so with the March salary payments starting to get credited in bank accounts.

For the better part of last month, the PKR was in the plus 48 range to the dirham, and holding up despite the uncertainties created for emerging market currencies by the Russia-Ukraine conflict. In recent days, however, the Pakistan currency came under renewed pressure over the political situation leading up to the no-confidence motion against the government.

“There will be some clarity on the currency range only after the no-confidence vote takes place Sunday,” said an analyst. “So far, there is no sign of central bank intervening in the currency markets to stall the decline.

“The PKR has dropped 16 per cent against the dollar this year, and will likely remain stuck at 50 plus to the dirham through today. Pakistani expats were holding back on their next remittances in the expectation of a further drop – they got that now.”