Pakistani rupee outboxes US dollar...for now

The dealers kept their fingers crossed as the Pakistani rupee exhibited some spine as it opened the week on a positive note against the US dollar in the interbank market on Monday, reported 24NewsHD TV channel.

As per the State Bank of Pakistan, the rupee which has gained Rs5.58 in the morning, lost steam towards the end of the day and settled to close at Rs275.30, up Rs1.28.

Interbank closing #ExchangeRate for todayhttps://t.co/YueVOAfzUi pic.twitter.com/hCfZxfB3MU

— SBP (@StateBank_Pak) February 6, 2023

The latest reprieve for the local currency came after it slipped to another all-time low against the US dollar on Friday last, closing over the 276 mark in the inter-bank market. As per the State Bank of Pakistan (SBP), the currency settled at 276.58, a decline of Rs5.22 or 1.89%.

Interbank closing #ExchangeRate for todayhttps://t.co/22WDdOJ0oq pic.twitter.com/tgYeO2B6hC

— SBP (@StateBank_Pak) February 3, 2023

The local currency has depreciated by 25.93% during the ongoing fiscal year against the greenback.

Friday’s closing is the weakest level for the rupee, and comes as talks between Pakistan and the IMF continued in Islamabad.

Experts were of the view that the plunge in rupee’s value came on account of negative sentiment pertaining to talks with the IMF. “PM Shehbaz said the IMF is giving Pakistan a tough time, which has dented market sentiment. Moreover, our forex reserves continue to deplete at a quick rate, which is also taking its toll,” said an economist.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) had dropped by a massive $592 million to a mere $3.09 billion. This is the lowest level of State Bank reserves since February 2014.

Total liquid foreign #reserves held by the country stood at US$ 8.74 billion as of January 27, 2023.
For details https://t.co/WpSgomnKT3 pic.twitter.com/LE9eay1XU2

— SBP (@StateBank_Pak) February 2, 2023

In another key development, Finance Minister Ishaq Dar had approved a proposal presented by Maulana Basheer Farooqi, Chairman of SWIT, to raise an interest-free $2 billion from overseas Pakistanis to alleviate the ongoing foreign exchange crisis.

Reporter Ashraf Khan