PKR settles stable at 280.25 against USD

January 16, 2024 (MLN): The Pakistani rupee (PKR) maintained a relatively stable position against the US dollar in Tuesday's interbank session and settled the trade at PKR 280.25 per USD, compared to the previous session's closing of PKR 280.24 per USD.

The currency saw an intraday high (bid) of 280.6 and a low (ask) of 280.1.

In the open market, Exchange Companies quoted the dollar at 278.56 for buying and 280.92 for selling.

It is worth highlighting that the PKR marked its 9th consecutive weekly victory by appreciating 1.04 rupees against the US dollar last week.

The home unit has found stable ground amid 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.

In a noteworthy development, the Executive Board of the International Monetary Fund (IMF) has successfully concluded the first review of Pakistan's economic reform program today, which is backed by the IMF's Stand-by Arrangement (SBA).

This approval paves the way for an immediate disbursement of SDR 528 million, equivalent to around $700m, bringing the total disbursements under the SBA to a substantial $1.9 billion.

Consequently, investors' confidence in the economy has been further bolstered, contributing significantly to the upward trend of the PKR against the mighty Dollar.

However, the Fund further highlighted that although economic activity has stabilized the outlook remains challenging and dependent on the implementation of sound policies. 

In comparison to major currencies, PKR gained 1.17 rupees against the Euro, closing at 305.92 compared to the previous value of 307.09.

The British Pound became cheaper by 2.15 rupees closing at 355.06 compared to 357.21 from a day ago.

The Swiss franc saw losses of 2.48 rupees, closing at 326.23 compared to 328.71 from the previous session.

Against the Japanese Yen, PKR gained 0.96 paisa, closing at 1.9181 versus 1.9277 a day ago.

The Chinese Yuan lost 6 paisa, closing at 39.01 against 39.07 from the previous session.

The Saudi Riyal closed at 74.73 with a gain of 0.23 paisa from its values of 74.72 a day ago.

The U.A.E Dirham increased in value by 0.44 paisa from 76.31 a day ago to 76.3.

During the current financial year, PKR has appreciated against the Dollar by 5.74 rupees or 2.05%. While the current calendar year has seen PKR appreciate by 1.61 rupees or 0.58%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 6 bps to 20.52 and 20.77%.

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