Rupee’s 28-Day Winning Streak Against Dollar Comes to an End
Published on: October 18, 2023.
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Rupee Falls Against Dollar After 28 Days of Appreciation
The Pakistani rupee experienced a slight decline against the US dollar in the interbank market, breaking its 28-day winning streak. According to the State Bank of Pakistan, the rupee fell by Re0.2 or 0.07% to close at 277.03, compared to the previous day’s rate of 276.83.
Analysts believe that this decline was a necessary correction following the continuous appreciation of the rupee. Arif Habib Limited’s Head of Research, Tahir Abbas, stated that a correction was bound to happen due to the consistent appreciation. He also highlighted that the future movement of the rupee would be influenced by Pakistan’s International Monetary Fund (IMF) review in November, as well as the trends in multilateral inflows, imports, and remittances.
Samiullah Tariq, the Head of Research at Pakistan-Kuwait, agreed with Abbas and acknowledged the correction in the rupee’s value.
In July, the IMF approved a nine-month Stand-By Arrangement (SBA) of $3 billion to support Pakistan’s economic stabilization program. The first disbursement of $1.2 billion has been made, with the remaining amount to be phased over the duration of the program, subject to quarterly reviews. The first review will take place in November.
Raza Jafri, the Head of Equities at Intermarket Securities, suggested that the rupee may consolidate around its current levels. He stated that if there are significant inflows, the currency may resume its appreciating trend. However, based on the Real Effective Exchange Rate (REER), the currency appears to be fairly valued at the moment.
This correction in the rupee’s value is an important development in the foreign exchange market and will be closely watched by investors and analysts.
Source: [Geo News](https://www.geo.tv){:target=”_blank” rel=”nofollow”}
