ISLAMABAD: The Pakistani Rupee continued its upward trend for the last couple of days, as on Wednesday, the local unit gained 03 paisa further against the American dollar in interbank trading, settling at Rs. 278.04 compared to the previous day’s rate of Rs. 278.07.
Meanwhile, according to the Forex Association of Pakistan (FAP), the buying and selling price of the greenback in the open market settled at Rs. 278.5 and Rs. 281.25, respectively.
Similarly, the price of the Euro went down by 47 paisa to settle at Rs. 300.97 against the previous day’s closing of Rs. 301.44, as reported by the State Bank of Pakistan (SBP).
Continuing from the previous day, the Japanese Yen remained constant at Rs. 1.83, while the British Pound witnessed a decline of 76 paisa to settle at Rs. 350.99 compared to Rs. 351.75 on Tuesday.
Additionally, the price of the Emirates Dirham and the Saudi Riyal went down by 01 paisa each to close at Rs. 75.71 and Rs. 74.13, respectively.
Pak Rupee Against US Dollar
The Pakistani currency has experienced fluctuations over the past few months against the US dollar. It witnessed appreciation for a record 28 consecutive sessions from September to the middle of October 2023, followed by a continuous fall for 17 consecutive sessions from October to the middle of November 2023.
However, at the end of December 2023 and then in January 2024, the local unit mostly appreciated against the US Dollar, thanks to inflows from the IMF (International Monetary Fund) in the form of Rs. 700 million, followed by a $2 billion rollover from the UAE on January 20. Additionally, on February 29, China also rolled over $2 billion to Pakistan, which was due in March 2024. Subsequently, the local currency appreciated by over Rs. 5 in the interbank market during the last four to five weeks.
In another major development, on March 20, Pakistan and the IMF reached a staff-level agreement over the final review of the $3 billion Standby Agreement, adding another positive sign for boosting the local currency and the country’s economy. However, the nation must be prepared for further price hikes as the new IMF agreement is likely to be conditioned with more taxes.
