Daily Times

Pakistani rupee improved against the US dollar in the inter-bank market for the second straight session on Friday and closed the 13th consecutive week on a positive note.

The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 279.34 against the dollar in the interbank market and closed at 279.28, appreciating by 6 paisas (+0.02 percent). Out of the last 40 sessions, the rupee has surged in 35 sessions and lowered in four sessions, while it remained unchanged in one session.

Overall, the local unit improved by Rs0.13 against the greenback this week while it has gained Rs7.84 during the previous 13 weeks, which it closed on a positive note. The rupee has improved by Rs9 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 282.5 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.

Unofficial and preliminary results for the country’s general elections started to come in after millions of citizens exercised their right to vote on Thursday. As per preliminary and unofficial results, PTI-backed independent candidates were ahead of their rival candidates in several NA seats on Friday. Despite uncertainty arising from delays in election results, the local unit stood strong and notched another victory against the mighty dollar.

In a major development, Moody’s Investors Services stated that a timely announcement of the results, leading to a smooth formation of a new government will reduce policy and political uncertainty. This is crucial for the country that is facing very challenging macroeconomic conditions, with a fragile balance of payments, weak growth, and high inflation.

Meanwhile, a trader said the rupee is poised to take hits in the coming days due to uncertainty created as a result of the February 8 elections. Reports of rigging have greatly undermined the system and hurt market sentiment, he said, adding one should expect the local unit’s fall starting from next week.