ISLAMABAD: After appreciating by 10 paisa last Friday, Pakistani Rupee on Monday remained almost stable with a slight depreciation of 01 paisa against the greenback in the interbank trading to settle at Rs 278.39 against the previous day’s closing of Rs 278.38.
Meanwhile, according to the Forex Association of Pakistan (FAP), the buying and selling price of the American dollar in the open market stood at Rs 277.25 and Rs 279.85 respectively.
Unlike the US dollar, the price of the Euro went down by 49 paisa against the local currency and closed at Rs 298.38 against Rs 298.87 on Friday, according to the State Bank of Pakistan (SBP).
Like the previous day, the Japanese Yen remained unchanged at Rs1.78, while the British Pound registered an increase by 31 paisa to settle at Rs348.79 against the previous day’s closing of Rs348.48.
The price of the Emirates Dirham and the Saudi Riyal remained unchanged at Rs75.79 and Rs74.22 respectively.
Pakistani Rupee Against US Dollar
The local unit registered both appreciation and fall, against the US dollar during the last couple of months with recent continuous improvement except the last few days. From September, till the middle of October 2023, the local currency observed appreciation for a record 28 consecutive sessions against the greenback, followed by a continuous decline 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 Pakistani Rupee mostly enjoyed appreciation against the greenback, thanks to the inflow from the IMF (International Monetary Fund) in form of Rs700m followed by a $2b roll over from the UAE on January 20, 2024. In addition, on 29th February, China also rolled over $2b to Pakistan which was due in March 2024. As a result, the local currency improved by over Rs 7 in the interbank during the last five to six weeks.
In another key 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 in the improvement of the local currency and the country’s economy. However, the nation must be ready for further increases in prices in the country as the new IMF agreement is likely to be coupled with further taxation.
In addition, Pakistan’s Finance Minister’s recent engagement in Washington as part of the negotiation for a new multi-billion-dollar programme with the International Monetary Fund (IMF) would further clarify the strength of the local currency in the near future.
