January 08, 2024 (MLN): The Pakistani Rupee (PKR) started today's trading session on a strong note by appreciating an additional 40 paisa against the US dollar in intraday trading.
This increase was observed in comparison to the previous closing rate of PKR 281.4 per USD.
The local unit was quoted at PKR 281.14/281.54 [11:05 am PST] with the trades being reported at 281 per USD.
It is crucial to note that the domestic currency concluded the first week of 2024 by extending its upward trend for the eighth consecutive week.
One of the key developments during the week was that the local unit snapped its 13-day-long winning streak against the greenback in the first trading session of 2024, depreciating by a mere 3.37 paisa against the US dollar.
However, the home currency made a strong comeback on Wednesday and maintained its upward trend towards the last trading session of the week.
The positive market sentiments, attributed to the expectations of the approval of the second loan tranche worth $700 million by the International Monetary Fund (IMF), continue to benefit the local currency.
It is worth highlighting that Pakistan has been included in the IMF's meeting agenda for January 11, 2024.
Moreover, the latest trade numbers released by the Pakistan Bureau of Statistics (PBS) have also shown satisfactory results as the country's trade deficit reduced significantly by 13.43% MoM and 40.13% YoY in December.
The improvement in the trade deficit is attributed to a significant 9.29% MoM surge in exports, combined with a marginal yet crucial 0.55% MoM decline in imports.
