Interbank closing: rupee gains 16 paisa versus dollar

WEB DESK: In a noteworthy development, the Pakistani rupee exhibited resilience by gaining 0.06 per cent against the US dollar in the interbank market on Wednesday.

The State Bank of Pakistan (SBP) reported that the local currency settled at 279.12 at close, experiencing a marginal loss of Re0.16 against the greenback.

On the preceding day, Tuesday, the rupee saw a slight decline, settling at 279.28 against the US dollar, according to SBP records.

Moody’s Investors Service, a global credit rating agency, issued a pivotal statement on Tuesday, expressing optimism regarding Pakistan’s credit rating.

The agency stated that an upgrade is likely if the government successfully addresses liquidity and external vulnerability risks in a substantial and sustained manner.

Despite this positive outlook, Moody’s maintained Pakistan’s credit rating at ‘Caa3’ for long-term issuer rating, with a stable outlook.

Moody’s analysis emphasised that Pakistan’s credit profile reflects very high liquidity and external vulnerability risks.

The country’s foreign exchange reserves remain significantly below the required levels to meet its substantial external financing needs in the near and medium term.

Internationally, the US dollar held steady as traders awaited the Federal Reserve’s preferred measure of inflation due on Thursday for insights into the potential timing of interest rate adjustments.

In currency market movements, the Pakistani rupee displayed strength against major currencies, gaining 1.06 rupees against the Euro, closing at 302.12.

The British Pound became cheaper by 1.11 rupees, closing at 353.31, and the Swiss franc saw losses of 80.98 paisa, closing at 316.89.

Against the Japanese Yen, PKR gained 0.63 paisa, closing at 1.8511, while the Chinese Yuan lost 2.56 paisa, closing at 38.77.

Noteworthy fluctuations were observed in the Saudi Riyal, which closed at 74.42 with a loss of 4.1 paisa, and the U.A.E. Dirham, which decreased by 4.08 paisa, closing at 76.03.

In the ongoing financial year, the Pakistani rupee has appreciated against the dollar by 6.87 rupees, or 2.46 per cent.

Similarly, in the current calendar year, PKR has witnessed an appreciation of 2.74 rupees, or 0.98 per cent.

Turning to the money market, the benchmark 6-month Karachi Interbank bid and offer rates remained unchanged at 21.49 per cent and 21.74 per cent, respectively.

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