Daily Times

Rupee improved by 26 paisas (+0.09 percent) against the US dollar in the inter-bank market for the 9th straight session on Friday, closing the sixth consecutive week on a positive note, while it gained 25 paisas in the open market.

The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 282.79 against the dollar in the interbank market and closed at 282.53. The local unit improved by 73 paisas against the greenback this week while it has gained Rs4.50 during the previous six weeks.

Similarly, the rupee improved by Rs5.76 during the current fiscal year 2023-24. However, the rupee depreciated by Rs51.69 in the current year. The rupee shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October. The currency surged more than 6 percent in September to become the top performer in the world. On the other hand, the local unit gained 25 paisas against the greenback in the open market. The rupee was quoted at 281 for buying and 284 for selling as compared to 281.25 for buying and 284.25 for selling in the previous session, according to data provided by the Exchange Companies Association of Pakistan (ECAP). The rupee gained 50 paisas against the greenback this week while the local unit’s appreciation against the greenback was also 50 paisas last week.

According to experts, the local unit is expected to remain stable as the market awaits the International Monetary Fund (IMF) executive board meeting, which is scheduled for January 11. The IMF’s executive board will decide on the release of the next tranche of $700 million to Pakistan under its ongoing $3 billion Stand-by Arrangement (SBA).

The market remains confident amid an expected release of funds by the IMF next month, said experts. The expected release of funds would improve the external position of the country, and could unlock inflows from other multilateral and bilateral creditors, providing further cushion to the currency. Earlier in November, Pakistan and the IMF reached a staff-level agreement (SLA) on the first review of the country’s nine-month Stand-By Agreement (SBA). Pakistan’s foreign exchange reserves decreased by $136 million (-1.9 percent) to reach $6,904.8 million on a week-on-week basis, the SBP reported on Thursday. As of the week ending December 15, 2023, the SBP’s foreign currency reserves stood at $6,904.8 million, marking a $136 million decline compared to the previous week’s total of $7,040.8 million. The central bank attributed debt repayment as the reason for the decrease in reserves. The total liquid foreign currency reserves for the country, inclusive of reserves held by commercial banks, amounted to $12,068.4 million, with net reserves held by commercial banks standing at $5,163.6 million.