ISLAMABAD: The Pakistani Rupee continued its slight appreciation over the last couple of days, with the local unit gaining 05 paisa further against the US dollar in interbank trading on Tuesday, closing at Rs. 278.07 compared to the previous day’s figure of Rs. 278.12.
According to the Forex Association of Pakistan (FAP), the buying and selling prices of the American Dollar in the open market traded in the range of Rs. 278.5 and Rs. 281.25, respectively.
However, the price of the Euro went up by 60 paisa to settle at Rs. 301.44 compared to Rs. 300.84 on Monday, as reported by the State Bank of Pakistan (SBP). The Japanese Yen remained constant at Rs. 1.83, while the British Pound observed an increase of Rs. 1.16, settling at Rs. 351.75 against the previous day’s figure of Rs. 350.59.
In contrast, the price of the Emirates Dirham and the Saudi Riyal decreased by 01 paisa each, closing at Rs. 75.72 and Rs. 74.14, respectively.
Regarding the Pakistani Rupee against the US Dollar, the local currency has experienced fluctuations over the past few months. It witnessed appreciation for a record 28 consecutive sessions from September to the middle of October 2023, followed by a continuous decline for 17 consecutive sessions from October to the middle of November 2023.
Pak Rupee Against US Dollar
However, at the end of December 2023 and then in January 2024, the Pakistani Rupee mostly appreciated against the US Dollar, thanks to inflows from the IMF (International Monetary Fund) in the form of Rs. 700 million, followed by a $2 billion rollover from the UAE on January 20. Additionally, 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.
In another major development, on March 20, Pakistan and the IMF reached a staff-level agreement over the final review of the $3 billion Standby Agreement, adding another positive sign for the boost of the local currency and the country’s economy. However, the nation must be prepared for further price hikes as the new IMF agreement is likely to be conditioned with more taxes.
