Pakistani Rupee Shows Resilience, Records a 17-Paisa Gain Against USD
During the day, the currency reached an intraday high (bid) of 281.94 and a low (ask) of 281.9.
Karobar
On Wednesday, the Pakistani rupee (PKR) staged a robust recovery, reversing a 13-day-long decline against the U.S. Dollar observed in the previous session.
Closing at PKR 281.72 per USD, the domestic currency displayed an appreciation of 17.02 paisa compared to the previous session's close at PKR 281.89 per USD.
In the open market, Exchange Companies set the buying rate at 281.5 and selling rate at 283.5 for the dollar.
The positive market sentiment, driven by expectations surrounding the approval of a second loan tranche amounting to $700 million by the International Monetary Fund (IMF), continues to bolster the local currency. Notably, Pakistan's inclusion in the IMF's meeting agenda for January 11, 2024, adds to the optimistic outlook.
The latest trade data from the Pakistan Bureau of Statistics (PBS) also presents encouraging figures, with a significant 13.43% MoM reduction in the trade deficit and a noteworthy 40.13% YoY improvement in December. Export figures for the month surged by 9.29% MoM, while imports experienced a modest 0.55% MoM decline.
Comparatively, PKR exhibited gains against major currencies. It gained 2.19 rupees against the Euro, closing at 308.63 versus the previous 310.82. The British Pound became more affordable by 3.1 rupees, concluding at 356.24 compared to the previous day's 359.34. The Swiss franc saw losses of 2.52 rupees, closing at 331.25 against the previous session's 333.76.
Against the Japanese Yen, PKR gained 1.65 paisa, closing at 1.9758 compared to 1.9923 a day ago. The Chinese Yuan lost 9.24 paisa, closing at 39.43 against 39.53 from the previous session. The Saudi Riyal closed at 75.12, experiencing a loss of 4.74 paisa from its values of 75.17 a day ago. The U.A.E Dirham decreased in value by 5.05 paisa from 76.71 a day ago to 76.76.
In the current financial year, PKR has strengthened against the Dollar by 4.27 rupees or 1.51%. Meanwhile, the calendar year has witnessed a 13.65 paisa or 0.05% appreciation of PKR.
Turning attention to the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates marginally declined by 1 basis point to 21.22 and 21.47%.
