KARACHI
Pakistani rupee inched up against the US dollar in the inter-bank market on Thursday, improving by two paisas.
The State Bank of Pakistan (SBP) said that the rupee opened at 278.79 against the dollar in the interbank market and closed at 278.77, appreciating by 0.007 percent.
The local unit gained 15 paisas last week against the greenback. Overall, the rupee has improved by Rs9.56 during the current fiscal year 2023-24. The local unit improved by Rs0.39 in February, Rs2.36 in January and Rs3.31 in December, while it shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October.
Similarly, the local unit gained traction against the greenback in the open market. The rupee was quoted at 278.57 for buying and 281.22 for selling, according to data provided by different exchange companies. The rupee surged against the greenback by Re1 in February, Rs2 in January and Rs3.50 in December.
Internationally, the currency market was sedate on Thursday, with the US dollar consolidating against major peers as market players awaited more data out of the world’s largest economy for clues on the direction of Federal Reserve policy. Tuesday’s hotter-than-expected US consumer price index (CPI) has re-ignited concern that inflation could remain sticky, leaving traders to reassess if the Fed will start cutting interest rates at its June meeting as previously expected.
Moody’s Investors Service (Moody’s) has upgraded the outlook of Pakistan’s banking sector to ‘stable’ from ‘negative’ as macro challenges and fiscal pressures ease. Meanwhile, the International Monetary Fund (IMF) said last week that it will support the formulation of a new medium-term economic programme for Pakistan. The IMF Resident Representative in Pakistan Esther Perez Ruiz said on Friday that its aim is to support the implementation of strong policies to deepen financial stability, address the longstanding economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens.
In a related development, inflow of overseas workers’ remittances clocked in at $2.25 billion in February 2024, 6.2 percent lower on a month-on-month basis when compared to $2.4 billion in January 2024, showed data released by the SBP on Friday. On a yearly basis, the monthly inflow of remittances registered an increase of 13 percent as it stood at $1.99 billion in the same month of the previous year, data showed.
