Daily Times

The Rupee inched down by one paisa against the US dollar in the inter-bank market on Tuesday. The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 279.41 against the dollar in the interbank market and closed at 279.42, depreciating by one paisa (-0.00 percent). Out of the last 38 sessions, the rupee has surged in 33 sessions and lowered in four sessions, while it remained unchanged in one session.

Overall, the local unit improved by Rs0.18 against the greenback last week while it gained Rs7.71 during the previous 12 weeks, which it closed on a positive note. The rupee has improved by Rs8.87 during the current fiscal year 2023-24 and Rs2.36 in January. The rupee gained Rs3.31 against the US dollar in December, while it shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October.

On the other hand, the local unit lost traction against the greenback in the open market. The rupee was quoted at 280.5 for buying and 281.25 for selling, according to data provided by different exchange companies. The rupee surged by Rs2 against the greenback in January while it gained Rs3.50 in December. Market talk suggests that the rupee will remain stable around current levels until the general elections scheduled for February 8, 2024. The rupee-dollar exchange rate will take cue for future direction from the new government’s economic policies.

The recent positivity arises from improved macroeconomic conditions in the form of 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.

Meanwhile, the SBP said on Thursday that the country’s total liquid foreign reserves fell by $79 million during the last week.