ISLAMABAD: After witnessing an appreciation of 12 paisa on the previous day, the Pakistani rupee registered 17 paisa recovery against the American dollar in the inter-bank market on Wednesday to settle at Rs 283.61 against its last day value of RS 283.78, reported by State Bank of Pakistan (SBP).
Interbank closing #ExchangeRate for today https://t.co/NWrbjVkR3B#SBPExchangeRate pic.twitter.com/NyVjQLfMyD
— SBP (@StateBank_Pak) December 13, 2023
Meanwhile, like the interbank, the local currency also observed marginal appreciation against the greenback and was trading in the range of Rs 284.50 for selling and Rs 281.50 for buying.
According to sources, the Finance Division has instructed other departments to fulfill all relevant requisites before the second review under the Stand-By Arrangement (SBA), scheduled to be held in February 2024. If these requirements were fulfilled on time, it would help Pakistan to get the next tranche from the IMF on time and would assist in appreciating the local currency further.
Pakistani Rupee During Last Few Months
The local currency witnessed continuous appreciation and depreciation during the last 2 to 3 months. From September 6 till the middle of October 2023, the Pakistani currency appreciated for 28 consecutive sessions against the dollar, followed by depreciation for 17th consecutive sessions from October to November 15.
Later, from November 16, the domestic currency bounced back and got an appreciation for five consecutive days till November 22. The local currency observed another slight decline against the US dollar, went down by 51 paisa in three consecutive sessions. However, at the end of November, the local currency ended its downward spree quickly and started to improve.
Market experts believe the recent continued appreciation occurred due to the recent meeting about the second tranche of the $3 billion Stand-By Agreement with the IMF, which would be followed by the executive board meeting of the IMF on January 2024.
