KARACHI
Pakistani rupee improved by 16 paisas (+0.06 percent) against the US dollar in the inter-bank market for the 10th straight session on Tuesday.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 282.53 against the dollar in the interbank market and closed at 282.37. The local unit improved by 73 paisas against the greenback last week while it has gained Rs4.50 during the previous six weeks.
Similarly, the rupee improved by Rs5.92 during the current fiscal year 2023-24. However, the rupee depreciated by Rs51.53 in the current year. The rupee shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October. The currency surged more than 6 percent in September to become the top performer in the world.
On the other hand, the local unit remained unchanged against the greenback in the open market. The rupee was quoted at 281 for buying and 284 for selling as compared to the same rate in the previous session, according to data provided by the Exchange Companies Association of Pakistan (ECAP). The rupee gained 50 paisas against the greenback last week.
Earlier, the rupee advanced against the dollar during the previous six weeks, a momentum aided by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA). Since the announcement of the SLA on November 15, the local unit has gained Rs5.61 against the greenback. The IMF’s executive board will decide on the release of the next tranche of $700 million to Pakistan on January 11. The market remains confident amid an expected release of funds by the IMF next month.
Meanwhile, Pakistan’s foreign exchange reserves decreased by $136 million (-1.9 percent) to reach $6,904.8 million on a week-on-week basis, the SBP reported on Thursday. As of the week ending December 15, 2023, the SBP’s foreign currency reserves stood at $6,904.8 million, marking a $136 million decline compared to the previous week’s total of $7,040.8 million. The central bank attributed debt repayment as the reason for the decrease in reserves. The total liquid foreign currency reserves for the country, inclusive of reserves held by commercial banks, amounted to $12,068.4 million, with net reserves held by commercial banks standing at $5,163.6 million.
