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KARACHI:
Pakistani currency notched up fresh gains for the eighth consecutive working day on Monday, rising to a new five-month high at Rs278.12 against the US dollar in the inter-bank market in the wake of higher supply of the foreign currency compared to its demand.
According to State Bank of Pakistan’s (SBP) data, the rupee inched up Rs0.02 on a day-on-day basis against the greenback.
The currency has cumulatively gained 10.41%, or Rs28.95, in the past six and a half months compared to the all-time low close of Rs307.10/$ recorded in the first week of September 2023.
Exchange Companies Association of Pakistan (ECAP) reported that the local currency closed unchanged at Rs280.73/$ in the open market for the second successive working day.
Read Rupee surges to new five-month high at Rs278.14/$
Market talk suggests that achievement of a staff-level agreement with the International Monetary Fund (IMF) for the release of third and last loan tranche of $1.1 billion has encouraged other global financial institutions including the World Bank to unlock financing for different projects in Pakistan.
The inflows will help the country keep foreign exchange reserves at stable levels despite continuous repayment of the maturing foreign debt.
More importantly, the reserves have continued to improve over the past two consecutive weeks, reaching a five-week high at $8.02 billion in the week ended March 15, 2024.
The sale of dollar proceeds by exporters and the inflow of remittances during the holy month of Ramazan and ahead of Eid festival helped push the reserves above $8 billion.
Published in The Express Tribune, March 26th, 2024.
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