The Pakistani rupee gained further ground 4th day in a row against the US Dollar today after opening trade at 280 in the interbank market.
At 11:30 PM, it was bullish, rising as high as 278 after gaining ~Rs. 5 against the greenback during intraday trade.
The interbank rate remained at 280-281 before anchoring trends at the 283 level for the remainder of the day. Open market rates across multiple currency counters stood in the 281-284 range today.
At close, the PKR appreciated by 0.09 percent to close at 283.26 after gaining 25 paisas against the dollar today.
The rupee closed in the green fourth day in a row today. On a calendar year-to-date basis, it has so far depreciated by 20.06 percent and appreciated by 0.96 percent on a fiscal YTD basis.
Overall, the rupee is down nearly Rs. 65 since January 2023. Since April 2022, it is down over Rs. 112 against the greenback. As per exchange rate movements seen today, the PKR has gained 25 paisas against the dollar.
In a key development, the foreign exchange reserves held by the State Bank of Pakistan (SBP) were recorded at $7.041 billion, up $21 million compared to $7.020 billion on December 1.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $12.206 billion, up $99 million over the previous week. The net reserves held by banks stood at $5.166 billion, registering an increase of $79 million during the week.
A trader opined that the IMF Executive Board is set to meet on January 11 to consider Pakistan’s case on its recently concluded first review of the $3 billion Standby Arrangement. He said increased reserves would offer more confidence to prospectus investors looking to do business in one of the cheapest markets in Asia. This would support the exchange rate and help trim inflation, but only marginally.
A massive leap in recovery can only come from certainty on elections and stringent adoption of constructive reforms for fiscal recovery, he added.