Interbank closing: PKR gains four paisa against USD

WEB DESK: In the closing trading session of the fiscal year 2023-24, the Pakistani rupee (PKR) concluded on a positive note, showing a slight uptick of 0.01 per cent against the US dollar (USD) in the inter-bank market on Friday.

The local currency settled at 278.34 at close, marking a modest gain of Re0.04 compared to its previous close of 278.38 on Thursday, where it had appreciated by Re0.02.

Throughout recent weeks, the Pakistani rupee has generally held steady within the range of 277 to 279 against the US dollar. This stability comes amidst Pakistan’s ongoing efforts to secure a substantial International Monetary Fund (IMF) bailout programme.

Notably, the rupee, which had stood at 285.99 against the dollar on June 27, 2023, has maintained relative stability for the majority of the fiscal year. This stability has been supported by regulatory measures implemented by the State Bank of Pakistan (SBP) last September aimed at curbing illicit currency trading and smuggling.

During the fiscal year 2023-24, the PKR recorded a year-on-year appreciation of 2.8 per cent against the US dollar, marking a significant turnaround after three years of depreciation.

Market analysts attribute this appreciation to improved economic indicators observed over the fiscal year, including a narrowing current account deficit, increased foreign inflows, reduced spreads between open and inter-bank rates, and various administrative interventions.

Meanwhile, internationally, the US dollar has been strengthening, poised for its second consecutive quarterly gain and reaching nearly a four-decade high against the yen in Asian markets on Friday.

This movement comes ahead of a crucial US inflation report, underscoring global economic dynamics impacting currency markets.

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