ISLAMABAD: After a slight but continuous appreciation for the last 2 to three weeks, the Pakistani Rupee on Monday witnessed a slight devaluation of 02 paisa against the American dollar in the interbank trading to close at Rs277.94 against Rs277.92 on the previous day.
Meanwhile, according to the Forex Association of Pakistan (FAP), the buying and selling price of the US dollar in the open market remained stable with no major change and stood at Rs277.3 and Rs280.4 respectively.
Unlike the greenback, the price of the Euro went down by 09 paisa against the local unit to close at Rs301.07 against the previous day’s closing of Rs301.16, according to the State Bank of Pakistan (SBP).
The Japanese Yen, however, remained constant at Rs1.83, while the British Pound recorded an increase of 10 paisa in the exchange rate to close at Rs350.97 compared to Rs350.87 last Friday.
The price of the Emirates Dirham and the Saudi Riyal remained stable against the local unit at Rs 75.68 and Rs 74.09 respectively.
Pakistani Rupee Against US Dollar
The local currency oscillated both ways against the US Dollar during the last couple of months with a recent continued bull run. From September, till the middle of October 2023, the Pakistani currency observed improvement for a record 28 consecutive sessions against the greenback, followed by a continues fall for 17th consecutive sessions from October till the middle of November 2023.
However at the end of December 2023, and then in January 2024, the local unit mostly enjoyed appreciation against the greenback, thanks to the inflow from the IMF (International Monetary Fund) in the form of Rs700m followed by a $2b roll over from the UAE on January 20. In addition, on 29th February, China also rolled over $2b to Pakistan which was due in March 2024. As a result, the Pakistani Rupee appreciated by over Rs 7 in the interbank during the last five to six weeks.
In another major development on 20th March (Wednesday) Pakistan and the IMF reached a staff-level agreement over the final review of the $3 billion Standby-By Agreement, adding some relief for boosting the local currency and the country’s economy. However, the nation must be ready for further increases in prices and inflation in the country as the new IMF agreement is likely to be conditioned with further taxation.
