The Pakistani rupee demonstrated notable resilience for the fourth consecutive day against the US Dollar, commencing trade at 280 in the interbank market. By 11:30 PM, it exhibited a bullish trend, reaching a peak at 278 after experiencing an intraday gain of approximately Rs. 5 against the greenback.
Throughout the day, the interbank rate fluctuated between 280-281 before stabilizing at the 283 level. In the open market, currency rates varied in the 281-284 range.
Closing at 283.26, the PKR appreciated by 0.09 percent, securing a gain of 25 paisas against the dollar for the day. This marks the fourth consecutive day of the rupee closing in positive territory. Year-to-date, the rupee has depreciated by 20.06 percent, but on a fiscal year-to-date basis, it has experienced a modest appreciation of 0.96 percent.
Since January 2023, the rupee has witnessed an overall decline of nearly Rs. 65, and since April 2022, it has depreciated by over Rs. 112 against the US dollar. Notably, on the current day, the PKR gained 25 paisas against the dollar.
In a significant development, the foreign exchange reserves held by the State Bank of Pakistan (SBP) reached $7.041 billion, reflecting a $21 million increase from December 1. The country’s overall liquid foreign currency reserves, inclusive of net reserves held by banks other than the SBP, totaled $12.206 billion, indicating a $99 million rise from the previous week. Among these, net reserves held by banks increased by $79 million to reach $5.166 billion.
A trader shared insights, mentioning that the IMF Executive Board is scheduled to convene on January 11 to assess Pakistan’s case following the first review of the $3 billion Standby Arrangement. He expressed optimism that augmented reserves would instill confidence in prospective investors eyeing opportunities in one of Asia’s most affordable markets.
While this development may support the exchange rate and contribute marginally to inflation control, a substantial recovery hinges on electoral certainty and the rigorous implementation of constructive fiscal reforms.
