The Pakistani rupee extended its winning streak to eight against the US Dollar today after opening trade at 279 in the interbank market.
It was largely stable against the greenback during intraday trade and hardly parried any movement throughout the session after briefly touching 278 at 12:55 PM.
The interbank rate later dropped back to 279 before closing at the same level for the remainder of the day. Open market rates across multiple currency counters were stable in the 279 range today.
At close, the PKR appreciated by 0.03 per cent to close at 279.59 after gaining 7 paisas against the dollar today.
Adding to yesterday’s marginal uptick, the rupee closed in the green for the 8th day in a row today. On a fiscal year-to-date basis, it has so far appreciated by 2.27 percent.
Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 107 against the greenback. As per the exchange rate movements seen today, the PKR gained 7 paisas against the dollar today.
A trader informed ProPakistani that the rupee has slowed upticks since the end of November 2023 and may reverse recoveries if any late political drama changes expectations for buyers before the February election.
“Our caretakers handled the IMF talks surprisingly well despite popular opinion, which has helped the money markets gain traction in recent weeks. On the other hand, domestic politics and unexplained interventions at the governance level will hurt sentiments. The state must avoid any unwanted confrontations or risk everything like last year. One can argue elections won’t happen, and if they do, beneficiaries won’t like the outcome,” one of them added.
In a key development, the foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $243 million to $8.27 billion compared to $8.027 billion on January 12.
In a statement, the central bank highlighted that it received the second International Monetary Fund (IMF) tranche of $705 million under the $3 billion Stand-By Arrangement (SBA) and executed the government’s external debt repayments.
The PKR was green against most of the other major currencies in the interbank market today. It gained one paisa against the Saudi Riyal (SAR), two paisas against the UAE Dirham (AED), Rs. 1.19 against the British Pound (GBP), and Rs. 2.01 against the Euro (EUR).
Meanwhile, it lost 17 paisas against the Australian Dollar (AUD) and 76 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.