KARACHI: Pakistani rupee continued making gains against the US dollar in the interbank market for the 10th week in a row and improved by Rs0.46. According to details, the rupee opened at 280.36 against the greenback in the interbank market on Monday last and closed at 279.90 on Friday, registering a rise of 0.16 percent week-on-week. Overall, the local unit has improved by Rs7.13 during the previous ten weeks. TLTP
\nThe rupee has surged in 25 out of the last 27 sessions.
\nSimilarly, the rupee improved by Rs8.39 during the current fiscal year 2023-24 and Rs1.96 in the current year. The rupee gained Rs3.31 against the US dollar 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. The currency surged more than 6 percent in September.
\nFollowing suit, the local unit advanced against the greenback in the open market and closed the week in the range of 278.82 for buying 280.98 for selling against 279.32 for buying 281.48 for selling in the preceding week, according to data provided by different exchange companies.
\nThe rupee gained 50 paisas against the US dollar in the open market during the week under review. The rupee has gained Rs2 against the greenback in the previous four weeks while it gained Rs3.50 in December.
\nThe stability arises from improved macroeconomic conditions in the form of increased liquidity in the foreign exchange market due to tighter enforcement of regulations, a shrinking money supply, a balance of payments surplus on account of low import demand, and a moratorium on Chinese debt repayments.
\nThe SBP said on Thursday that it received a tranche of $705.6 million from the International Monetary Fund (IMF). The development came days after the IMF Executive Board completed the first review of the $3-billion Stand-By Arrangement. In another statement, the SBP said that the United Arab Emirates (UAE) confirmed rollover of its two deposits of $1 billion each placed with the State Bank of Pakistan for another one year, which were maturing in January 2024. In January 2023, the UAE agreed to roll over the existing loan of $2 billion and provide an additional loan of $1 billion.
\nThe latest developments hold significance for Pakistan\u2019s economic landscape as the country faces a low level of foreign exchange reserves amid repayments and low non-debt-creating dollar inflows. Foreign exchange reserves held by the SBP decreased by $66 million on week-on-week, clocking in at $8.15 billion as of January 5, data released last Thursday showed. Total liquid foreign reserves held by the country stood at $13.25 billion. Net foreign reserves held by commercial banks stood at $5.10 billion.
\nPakistan\u2019s international bonds fell on Thursday after the foreign ministry said it conducted strikes inside Iran, two days after Tehran attacked the bases of a group within Pakistani territory. The 2026 bond suffered some of the biggest declines, dropping 1.2 cents to trade at 71.125 cents in the dollar, data from Tradeweb showed.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI: Pakistani rupee continued making gains against the US dollar in the interbank market for the 10th week in a row and improved by Rs0.46. According to details, the rupee opened at 280.36 against the greenback in the interbank market on Monday last and closed at 279.90 on Friday, registering a rise of 0.16 percent […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-382151","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n