Open market: rupee inches upward against US dollar

The Pakistani rupee registered minor gains against the US dollar in the open market on Friday, while the local currency also strengthened in the inter-bank market.

During the day, currency dealers Business Recorder reached out to said the rupee was being quoted at 284 for selling and 281 for buying purposes for customers.

At close on Thursday, the currency settled at 284.25 for selling and 281.25 for buying, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

In the inter-bank market, the rupee was hovering at 282 level against the greenback.

Experts said that the stability in the currency comes on account of funding from multilateral including the World Bank approval of $350 million in financing for Pakistan to support fiscal and competitiveness reforms.

The market awaits the International Monetary Fund (IMF) executive board meeting scheduled on January 11, which will decide on the release of the next tranche of $700 million to Pakistan under its ongoing $3 billion Stand-by Arrangement (SBA).

On the other hand, the country’s central-bank held foreign exchange reserves continued to decline. The reserves decreased by $136 million to $6.904 billion due to debt repayments during the week ended December 15, 2023.