Pakistani Currency Strengthens Against US Dollar in Open Market

In a positive turn of events, the Pakistani rupee experienced a slight uptick against the US dollar in the open market on Thursday. Simultaneously, the local currency also demonstrated appreciation in the inter-bank market, marking a promising trend for the country's economic landscape.

Currency dealers, as reported by Business Recorder, communicated that the rupee was quoted at 286.5 for selling and 283.5 for buying purposes during the day. The closing rates remained consistent with these figures, as reported by the Exchange Companies Association of Pakistan (ECAP).

Compared to the previous day's closing rates of 287 for selling and 284 for buying, this marginal gain is noteworthy. The resilience of the rupee in both markets indicates a positive sentiment among traders and investors.

In the inter-bank market, the Pakistani rupee continued its upward trajectory against the US dollar for the third consecutive session, registering a 0.08% increase on Thursday. According to the State Bank of Pakistan, the currency settled at 285.17, reflecting a gain of Re0.22.

It's important to note that maintaining a minimal gap between rates in the inter-bank and open markets is a structural benchmark set by the International Monetary Fund (IMF). The current trend aligns with this requirement, contributing to the stability of the Pakistani currency.

In a significant development supporting Pakistan's economic landscape, the Kingdom of Saudi Arabia (KSA) has extended the term for a $3 billion deposit placed with Pakistan, as announced by the State Bank of Pakistan (SBP) on Wednesday. This deposit aims to bolster Pakistan's economy, providing a financial cushion during these challenging times.

Adding to the positive economic indicators, earlier this month, the International Monetary Fund (IMF) staff and Pakistani authorities reached a staff-level agreement on the first review of the IMF Stand-By Arrangement (SBA) program. The government anticipates approval from the IMF's executive board in December, further solidifying confidence in Pakistan's economic recovery.