PKR Maintains Stability at 280.25 Against USD, Marking 9th Consecutive Weekly Gain
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates slightly decreased by 6 basis points to 20.52 and 20.77%.
Karobar
The Pakistani rupee (PKR) demonstrated resilience against the US dollar in Tuesday's interbank session, settling at PKR 280.25 per USD. This marked a marginal increase from the previous session's closing rate of PKR 280.24 per USD.
Throughout the trading day, the currency experienced a bid high of 280.6 and an ask low of 280.1.
In the open market, Exchange Companies quoted the dollar at 279 for buying and 281 for selling.
Notably, the PKR celebrated its 9th consecutive weekly victory by appreciating 1.04 rupees against the US dollar in the previous week.
The stability of the home unit can be attributed to various factors, including increased liquidity in the foreign exchange market due to stricter enforcement of regulations, a reduction in the money supply, a surplus in the balance of payments due to low import demand, and a temporary moratorium on Chinese debt repayments.
In a significant development, the Executive Board of the International Monetary Fund (IMF) successfully concluded the first review of Pakistan's economic reform program. This program, supported by the IMF's Stand-by Arrangement (SBA), received approval, leading to an immediate disbursement of SDR 528 million (approximately $700 million). This brings the total disbursements under the SBA to a substantial $1.9 billion.
As a result, investor confidence in the economy has strengthened, contributing significantly to the upward trend of the PKR against the US Dollar.
However, the IMF emphasized that while economic activity has stabilized, the outlook remains challenging and dependent on the implementation of sound policies.
In comparison to major currencies, the PKR showed strength, gaining 1.17 rupees against the Euro, closing at 305.92 (compared to 307.09). The British Pound became more affordable by 2.15 rupees, closing at 355.06 (compared to 357.21). The Swiss Franc experienced losses of 2.48 rupees, closing at 326.23 (compared to 328.71). Against the Japanese Yen, the PKR gained 0.96 paisa, closing at 1.9181 (compared to 1.9277). The Chinese Yuan lost 6 paisa, closing at 39.01 (compared to 39.07). The Saudi Riyal closed at 74.73 with a gain of 0.23 paisa from its previous value of 74.72. The U.A.E Dirham increased in value by 0.44 paisa from 76.31 to 76.3.
In the current financial year, the PKR has appreciated against the Dollar by 5.74 rupees or 2.05%. In the current calendar year, PKR has appreciated by 1.61 rupees or 0.58%.
