ISLAMABAD: After a slight depreciation of Rs-0.6 during the last two days, the Pakistani rupee remained largely stable against the American dollar in the inter-bank market on Wednesday while losing just Rs0.01 paisa to settle at Rs278.39, against the last day closing of Rs278.38, as per the State Bank of Pakistan (SBP).
Globally, the American dollar oscillated both ways, first an improvement last day, but later a downfall after a poor PMI (Purchasing Managers Index), followed by a light recovery again on Wednesday.
Pakistani Rupee Against American Dollar
The local unit swung both ways against the American dollar during the last couple of months with recent continued appreciation except for the last few days. From September, till the middle of October 2023, the local unit observed improvement for a record 28 consecutive sessions against the American dollar, followed by a continuous 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 currency mostly enjoyed appreciation against the American dollar, 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, 2024. In addition, on 29th February, China also rolled over $2b to Pakistan which was due in March 2024. As a result, the Pakistani unit 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 for improving the local unit and country 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 direction of the Pakistani currency in the near future.
