Daily Times

The rupee started the new week against the US dollar in the inter-bank market on a negative note and shed seven paisas on Monday.

The State Bank of Pakistan (SBP) said that the rupee opened at 279.19 against the dollar in the interbank market and closed at 279.26, depreciating by 0.03 percent. The local unit gained 17 paisas last week against the greenback.

Overall, the rupee has improved by Rs9.02 during the current fiscal year 2023-24. The local unit improved by Rs0.39 in February, Rs2.36 in January and Rs3.31 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.

Similarly, the local unit lost traction against the greenback in the open market. The rupee was quoted at 279.3 for buying and 282 for selling, according to data provided by different exchange companies. The rupee surged against the greenback by Re1 in February, Rs2 in January and Rs3.50 in December. The uncertainty surrounding the general elections held in the country on February 08 has somewhat disrupted the stable phase the home unit maintained against the USD for a significant period. In a key development, the country’s total liquid foreign reserves fell by $59 million during the last week due to debt repayments. According to SBP, the total liquid foreign reserves held by the country stood at $13.039 billion as of Feb 23, 2024 compared to $ 13.098 billion as of Feb 16, 2024.

Pakistan needs a deep surgery to bring revolutionary changes in the system and reform various sectors, the newly elected prime minister said in parliament on Sunday. It is crucial to mention that the International Monetary Fund (IMF) has also expressed its eagerness to collaborate with the new government on policies to ensure macroeconomic stability. The Fund appreciated the caretaker government of Pakistan for its efforts in maintaining economic stability through strict adherence to fiscal targets, while also safeguarding the social safety net.