ISLAMABAD: After a slight appreciation of 29 paisa the previous day, the Pakistani rupee on Thursday witnessed a marginal improvement against the American dollar, appreciating by just 2 paisa in the interbank market to settle at 278.77, compared to the previous day’s rate of Rs 278.79, as reported by the State Bank of Pakistan (SBP).
In a significant development, authorities from the government of Pakistan and the International Monetary Fund (IMF) team would initiate discussions on the second review of the $3 billion Stand-by Arrangement (SBA) from Thursday. This is considered a major step for boosting economic activities in the country. The progress on the IMF’s SBA front has bolstered the currency market, which has seen the rupee remain largely stable over the last few months.
Pak Rupee Against Other Currencies in Open Market
Unlike the interbank, the local unit depreciated slightly again the greenback in the open market. In open market Pak rupee lost 4 paisa both for buying and selling to settle at Rs278.61 and Rs281.26, respectively.
Meanwhile, the Euro appreciated by 30 paisa for buying and 25 paisa for selling against the local currency, closing at 303.25 and 306.20, respectively.
The Pakistani rupee lost 2 paisa for buying and 1.00 paisa for selling against the UAE Dirham, settling at Rs 75.72 and Rs 76.44, respectively.
Against the Saudi Riyal, the local unit lost 2 paisa for buying and 1 paisa for selling, settling at Rs 73.96 and Rs 74.66, respectively.
Pak Rupee Against American Dollar
The Pakistani rupee has seen fluctuations against the US dollar over the past few months, with recent upward trends. From September to mid-October 2023, the local currency recorded improvement for a record 28 consecutive sessions against the American dollar, followed by continuous falls for 17 consecutive sessions from October to mid-November 2023.
However, at the end of December 2023, and then in January 2024, the Pakistani rupee mostly observed improvement against the greenback, thanks to inflows from the IMF in the form of Rs 700 million followed by a $2 billion rollover from the UAE on January 20.
Moreover, on February 29, China also rolled over $2 billion to Pakistan, which was due in March 2024. As a result, the local currency appreciated by over Rs 5 in the interbank market during the last four to five weeks.
