Interbank closing: rupee remains stable against US dollar

WEB DESK: The Pakistani rupee (PKR) demonstrated a marginal improvement against the US dollar on Friday. The PKR gained one paisa, closing at Rs278.80 as compared to its last closing rate of Rs278.81 on Thursday.

Interbank closing #ExchangeRate for todayhttps://t.co/gBc4wXdK0o#SBPExchangeRate pic.twitter.com/7at62UZLzX

— SBP (@StateBank_Pak) October 20, 2023

During the initial trading hours in the inter-bank market, the local currency exhibited a slight upturn, climbing by 0.15 percent. Around 10 am, it was trading at Rs278.40, reflecting an increase of Re0.41.

Simultaneously, in a significant development, Pakistan’s current account deficit witnessed a substantial decline, reaching $8 million in September 2023.

This is a notable decrease from the previous year’s figure of $360 million for the same month in 2022. Moreover, in August 2023, the country’s current account deficit stood at $164 million.

Analysing the broader picture, during the first three months of the current fiscal year FY24 (from July 2023 to September 2023), Pakistan’s current account deficit experienced a significant drop, decreasing to $947 million.

Read more: Pakistan’s services trade deficit surges by over 75% to $216 million

This is in sharp contrast to the $2.258 billion recorded during the same period last year.

Additionally, Pakistan’s foreign exchange reserves, managed by the central bank, exhibited a positive trend. The reserves increased by $67 million on a weekly basis, reaching a total of $7.7 billion as of October 13.

These developments indicate a positive trajectory for Pakistan’s economy, with improvements in both the local currency’s value against the US dollar and the country’s current account deficit.

Market analysts are closely monitoring these trends for further insights into the economic landscape.