Pakistani Rupee strengthens to 281.40 against USD, marking 8th consecutive week of gains
Published on: January 10, 2024.
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The Pakistani Rupee has seen a positive trend in the inter-bank market, gaining against the US dollar for the third consecutive session. The currency improved by 27 paisas (+0.1 percent) to close the eighth straight week on a positive note. The State Bank of Pakistan (SBP) reported that the rupee opened at 281.67 against the dollar and closed at 281.40 for the interbank market.
Throughout the week, the local unit has strengthened by 46 paisas against the greenback, accumulating a gain of Rs5.63 over the past eight weeks. When considering a broader timeframe, the rupee has shown improvement by Rs6.89 during the current fiscal year 2023-24 and 46 paisas in the current year.
December proved to be a strong month for the rupee as it gained Rs3.31 against the US dollar. In November, however, it depreciated by Rs3.69. This followed a significant gain of Rs6.26 (+2.23 percent) against the greenback in October. The rupee’s performance in September was exceptional, surging more than 6 percent and becoming the top performing currency worldwide.
In the open market, the rupee observed a gain of 25 paisas against the US dollar. It was quoted at 279.75 for buying and 282.75 for selling, compared to 280 for buying and 283 for selling in the previous session.
On a different note, Pakistan’s foreign exchange reserves held by the SBP have increased for the second consecutive week, reaching a five-and-a-half-month high at $8.22 billion. These reserves have grown by $1.32 billion in just two weeks, rebounding from a low of $6.90 billion on December 15, 2023. This increase in reserves is attributed to official inflows from multilateral creditors. The inflows have helped Pakistan meet the International Monetary Fund’s (IMF) end-December quarterly target of net foreign assets (NFA).
Financial markets globally, as well as locally, were surprised by the back-to-back multilateral funding at this point in time. Experts expected such receipts after the IMF board’s approval of the release of the second loan tranche of $700 million. The IMF board meeting is scheduled for January 11. The foreign assistance came from the Asian Infrastructure Investment Bank (AIIB), World Bank, and Asian Development Bank (ADB).
It is anticipated that Pakistan’s foreign currency reserves will reach $9 billion by the end of June 2024, according to the IMF. The upcoming country report is expected to be released after the board meeting, where revised numbers may be provided.
Source: [Daily Times](https://dailytimes.com.pk)
