Pakistani rupee breaks losing streak, closes at Rs285.52 vs US dollar

WEB DESK: In Tuesday’s interbank session, the Pakistani rupee (PKR) witnessed a 12-paisa appreciation against the US dollar (USD), concluding the day at PKR 285.52.

This marks an improvement from the previous day’s closing rate of PKR 285.64 per USD.

Interbank closing #ExchangeRatefor todayhttps://t.co/6N1tm9NQMy#SBPExchangeRate pic.twitter.com/9SK0fKwraQ

— SBP (@StateBank_Pak) November 28, 2023

Throughout the day, the local unit reached an intraday high (bid) of 285.84 and a low (ask) of 286.

Meanwhile, in the open market, the PKR strengthened by 50 paisa, with exchange companies quoting buying and selling rates at 283.5 and 286.5, respectively. This compares to the preceding closing rates of 284 for buying and 287 for selling.

It’s noteworthy that this positive trend follows three consecutive daily losses suffered by the local unit against the US dollar.

Read more: Pakistan Stock Exchange closes above 60,000 for the first time in history

The resurgence is attributed to the successful staff-level agreement (SLA) reached between the International Monetary Fund (IMF) and Pakistani authorities during the first review under the Stand-By Arrangement (SBA).

In a recent development, Pakistan anticipates receiving funds amounting to $1.5 billion from global lenders upon the IMF’s approval of the loan tranche under the $3 billion SBA.

Dr Shamshad Akhtar, the caretaker finance minister, disclosed this during an interview with a local news channel.

Notably, persistent pressure resulting from the demand-supply gap for dollars had prevailed in the market for days, leading to four consecutive weeks of losses for the PKR.

Bloomberg’s latest report suggests that the local unit is positioned to conclude the year as Asia’s worst-performing currency, with expectations of continued depreciation in 2024.

PKR vs major currencies

Against major currencies, the PKR experienced varied outcomes: a gain of 33.13 paisa against the Euro, a slight appreciation of 7.7 paisa against the British Pound, a loss of 0.75 paisa against the Swiss Franc, a marginal decline of 0.5 paisa against the Japanese Yen, a decrease of 2.43 paisa against the Chinese Yuan, and a loss of 3.6 paisa against the Saudi Riyal. The UAE Dirham also experienced a reduction in value of 3.16 paisa.

For the current financial year, the PKR has appreciated by 0.47 rupees, or 0.16 per cent, against the dollar. However, in the calendar year, the PKR depreciated by 59.09 rupees, or 20.7 per cent.

In the money market, the benchmark 6-month Karachi Interbank bid and offer rates registered a minor increase of 1 basis point to 21.2 per cent and 21.45 per cent.