PKR gains around 12 paisa against greenback

 The Pakistani rupee (PKR) appreciated by 11.76 paisa against the US dollar in Monday's interbank session as the currency settled the trade at PKR 280.24, as compared to the previous day's closing of PKR 280.36 per USD.

The local unit saw an intraday high (bid) of 280.7 and a low (ask) of 280.15.

It is worth highlighting that the PKR marked its 9th consecutive weekly victory by appreciating 1.04 rupees against the US dollar last week.

The home unit has found stable ground amid increased liquidity in the foreign exchange market due to tighter enforcement of regulations, a shrinking money supply, a balance of payments surplus on account of low import demand, and a moratorium on Chinese debt repayments.

In a noteworthy development, the Executive Board of the International Monetary Fund (IMF) has successfully concluded the first review of Pakistan's economic reform program today, which is backed by the IMF's Stand-by Arrangement (SBA).

This approval paves the way for an immediate disbursement of SDR 528 million, equivalent to around $700m, bringing the total disbursements under the SBA to a substantial $1.9 billion.

Consequently, investors' confidence in the economy has been further bolstered, contributing significantly to the upward trend of the PKR against the mighty Dollar.

However, the Fund further highlighted that although economic activity has stabilized the outlook remains challenging and dependent on the implementation of sound policies. 

In comparison to major currencies, PKR gained 75.96 paisa against the Euro, closing at 307.09 compared to the previous value of 307.85.

The British Pound became cheaper by 97.69 paisa, closing at 357.21 compared to 358.18 from a day ago.

Swiss franc saw losses of 36.94 paisa, closing at 328.71 compared to 329.08 from the previous session.

Against the Japanese Yen, PKR gained 0.65 paisa, closing at 1.928 versus 1.934 a day ago.

The Chinese Yuan lost 6.64 paisa, closing at 39.0727 against 39.1391 from the previous session.

The Saudi Riyal closed at 74.72 with a loss of 2.94 paisa from its value of 74.75 a day ago.

The U.A.E Dirham decreased in value by 3.2 paisa from 76.333 a day ago to 76.301.

During the current financial year, PKR has appreciated against the Dollar by 5.75 rupees or 2.05%. While the current calendar year has seen PKR appreciated by 1.62 rupees or 0.58%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 9 bps to 20.58% and 20.83%.