The Pakistani rupee reversed Monday’s losses against the US Dollar after opening trade at 278 in the interbank market.
It was bullish against the greenback today.
Throughout the day, the interbank rate remained steady at 278 and ended at the same level. Meanwhile, open market rates for various currencies hovered around 278-279 range today.
On a fiscal year-to-date basis, the rupee has so far appreciated by 2.55 percent.
In general, the Pakistani rupee has fallen by about Rs. 52.52 since January 2023. Since April 2022, it has dropped by Rs. 96.52 compared to the US dollar. Today, the rupee strengthened by approximately 30 paisas based on the exchange rate changes observed.
This comes just shortly after the Ministry of Finance expressed confidence that the International Monetary Fund will release the third and final tranche of the Stand-By Arrangement (SBA) to Pakistan soon. “Staff-level agreement is expected after this appraisal.
Once Staff level agreement is reached, the final tranche of $1.1 billion will be disbursed, following the approval of the Executive Board of IMF, the ministry said in a statement earlie today.
Traders anticipate that the currency market will continue its upward trend, potentially reaching gains of at least 275 until the bailout funds are distributed. However, any additional increases will depend on the announcement of a larger bailout in the upcoming months. Despite some short-term positive developments, there is a possibility of a significant decrease in the near future.
The PKR was green against all of the other major currencies in the interbank market today. It lost seven paisas against the UAE Dirham (AED), seven paisas against the Saudi Riyal (SAR), 71 paisas against the Euro (EUR), and Rs. 1.85 against the British Pound (GBP).
