ISLAMABAD: In Friday’s interbank session, the Pakistani rupee (PKR) showed resilience against the US dollar, appreciating by more than 88 paisa. The day concluded with the currency settling at PKR 286.5 per USD, a favorable shift from the previous day’s closure at PKR 287.38.
Throughout the trading day, the local unit reached an intraday high bid of 287.05 and a low ask of 286.75.
In the open market, the PKR saw a gain of 50 paisa. Exchange companies quoted buying rates for the dollar at 288 and selling rates at 289, contrasting with the earlier figures of 288.5 for buying and 289.5 for selling.
This positive momentum aligns with the successful staff-level agreement between the International Monetary Fund (IMF) and Pakistani authorities concerning the first review under Pakistan’s Stand-By Arrangement (SBA).
Subject to approval by the IMF’s Executive Board, this agreement will unlock access to SDR 528 million, approximately $700 million, adding to the total disbursements nearing $1.9 billion under the program.
The IMF emphasized the importance of reinforcing macroeconomic sustainability and creating conditions for balanced growth within the SBA framework.
The outlined policy priorities by the authorities aim to restore a market-driven exchange rate and bolster foreign exchange reserves. They acknowledge the necessity for a market-determined rupee to alleviate external pressures and ensure sustainable reserve building.
In support of this strategy, plans are in place to enhance transparency and efficiency in the FX market, steering clear of administrative interventions that influence the rupee.
Notably, the Pakistani Rupee halted its 17-day downward trend against the dominant dollar in the prior session’s close.
Persistent pressure from the demand-supply gap for dollars had burdened the PKR, resulting in a weekly decline of 53 paisa against the greenback.
However, Bloomberg’s recent report suggests a brighter outlook for the PKR following the preliminary approval by the International Monetary Fund for the next tranche release in the ongoing $3 billion loan program.
In comparison to major currencies, the PKR made gains against the Euro, closing at 310.25 (compared to 311.6 previously), while the British Pound, Swiss Franc, and Japanese Yen experienced fluctuations.
Additionally, the Chinese Yuan, Saudi Riyal, and U.A.E Dirham witnessed alterations in their values against the PKR in the market.
