The Pakistani rupee continued its winning streak against the US Dollar, securing its eighth consecutive gain in the interbank market. Commencing trade at 279, it exhibited stability against the greenback throughout intraday trade, briefly touching 278 at 12:55 PM.
The interbank rate later reverted to 279, maintaining this level for the rest of the day. Open market rates across various currency counters remained stable within the 279 range. By the day’s close, the PKR appreciated by 0.03 percent, settling at 279.59, gaining 7 paisas against the dollar.
Marking the eighth consecutive day of positive movement, the rupee has shown an appreciation of 2.27 percent on a fiscal year-to-date basis. However, it has experienced a notable decline of nearly Rs. 60 since January 2023 and over Rs. 107 against the greenback since April 2022.
Despite the marginal uptick observed yesterday, the rupee’s recent trajectory suggests caution, with a trader indicating potential reversals in recoveries post end-November 2023, especially if late political developments impact buyer expectations before the February election.
The trader emphasized the positive handling of IMF talks by caretakers, contributing to recent money market traction. However, concerns were raised about potential negative impacts on sentiment due to domestic politics and unexplained interventions at the governance level. The statement urged the state to avoid unnecessary confrontations to prevent a repeat of the past year’s risks. There were speculations about the likelihood and outcomes of the elections, with the understanding that beneficiaries might not favor the results.
In a significant development, the State Bank of Pakistan’s foreign exchange reserves surged by $243 million to reach $8.27 billion, compared to $8.027 billion on January 12. The central bank attributed this increase to receiving the second tranche of $705 million under the $3 billion Stand-By Arrangement (SBA) with the IMF, which was utilized for the government’s external debt repayments.
In currency market movements, the PKR demonstrated strength against several major currencies. It gained one paisa against the Saudi Riyal (SAR), two paisas against the UAE Dirham (AED), Rs. 1.19 against the British Pound (GBP), and Rs. 2.01 against the Euro (EUR).
However, it experienced losses of 17 paisas against the Australian Dollar (AUD) and 76 paisas against the Canadian Dollar (CAD) in today’s interbank trading.
