PKR Shows Resilience, Surges Over 5 Paisa Against USD
Within the trading period, the currency experienced a high bid of 281.84 and a low ask of 281.8.
Karobar
In the latest interbank session on Thursday, the Pakistani rupee (PKR) showcased a notable appreciation of 5.08 paisa against the US dollar. Closing the trade at PKR 281.67 per USD, the currency demonstrated strength compared to its previous session's closure at PKR 281.72 per USD.
Concurrently, in the open market, Exchange Companies set the buying rate for the dollar at 281 and the selling rate at 283.
Earlier, the local currency had broken its 13-day winning streak against the greenback, witnessing a slight depreciation of 3.37 paisa in the initial trading session of 2024. However, a robust resurgence followed, with the home currency gaining 17 paisa against the USD.
The positive market sentiment, driven by anticipations surrounding the approval of a $700 million second loan tranche from the International Monetary Fund (IMF), continues to bolster the local currency.
Of note, Pakistan's inclusion in the IMF's meeting agenda for January 11, 2024, adds to the positive outlook.
Furthermore, recent trade statistics released by the Pakistan Bureau of Statistics (PBS) indicate a significant reduction of 13.43% MoM and 40.13% YoY in the country's trade deficit for December. This improvement stems from a noteworthy 9.29% MoM surge in exports, coupled with a slight but crucial 0.55% MoM decline in imports.
In contrast to major currencies, the PKR saw gains against the Euro, closing at 308.07 compared to its previous value of 308.63, marking an increase of 56.27 paisa.
Similarly, the British Pound, Swiss Franc, and Japanese Yen witnessed fluctuations, with the PKR showing gains or losses of varying paisa.
Additionally, during the current financial year, the PKR appreciated against the Dollar by 4.32 rupees or 1.53%. In the current calendar year, PKR's appreciation stood at 18.73 paisa or 0.07%.
Shifting to the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates experienced a minor decrease of 6 basis points, settling at 21.16 and 21.41%.
