KARACHI
Pakistani rupee snapped its 28-session winning streak against the US dollar in the inter-bank market on Tuesday with a depreciation of 20 paisas.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 276.83 against the dollar in the interbank market and closed at 277.03, showing a depreciation of 0.07 percent.
The recent appreciation marks the longest ever winning streak of the local unit against the greenback. The rupee has advanced to the highest level of the current fiscal year 2023-24. The local currency surged more than 6 percent in the past month to become the top performer in the world. The rupee has appreciated by Rs8.96 during the current fiscal year 2023-24, while it has depreciated by Rs47.61 in the current year.
However, the Pakistani rupee showed some improvement against the greenback in the open market. The rupee was quoted in the range of 273.50-276.50 a dollar as compared to 274-277 in the previous session. The rupee has recovered by Rs55.50 against the dollar in the last 30 sessions in the open market.
It is worth noting that the International Monetary Fund (IMF) has set stringent benchmarks, with one requirement being that the gap between rates in the interbank and open markets should not exceed 1.25 percent. PKR’s consecutive upward flight follows a series of measures undertaken by the State Bank of Pakistan (SBP) to stabilize the Pakistani currency. Last month, the SBP introduced a comprehensive set of structural reforms aimed at regulating Exchange Companies and curbing the dollar’s ascent.
Simultaneously, the caretaker government implemented administrative actions to combat currency smuggling and hoarding. As a result, authorities conducted countrywide raids, leading to the closure of numerous illegal currency exchanges and the confiscation of foreign currency worth millions.
In a related development, the SBP reported a 0.41% increase in its foreign exchange reserves on a week-on-week basis, with the total now standing at $7.65 billion.
The overall liquid foreign currency reserves of the country, including the reserves held by commercial banks, amounted to $13.03 billion. Commercial banks held reserves of $5,383.4 million.
The central bank’s reserves have improved modestly in the past few months, primarily due to financial assistance from the International Monetary Fund (IMF) and friendly nations.
