Reaches nearly Rs281.50/$, marking 3rd consecutive day of gains
The value of the Pakistani rupee rose to nearly Rs281.50 against the US dollar, reaching a 10-week high in the interbank market on Friday. This upward trend persisted for the third consecutive working day, with a significant increase in foreign currency inflows contributing to the positive momentum.
Data from the State Bank of Pakistan (SBP) indicated a 0.10% increase, equivalent to Rs0.27, resulting in a closing rate of Rs281.40 against the US dollar. Over the past five weeks, the currency has experienced a cumulative surge of 1.50%, or Rs4.24, providing relief against imported inflation.
In the open market, the Exchange Companies Association of Pakistan (ECAP) reported a 0.06% rebound, with the currency closing at Rs282.36/$. This positive trend followed reports of official inflows totaling $464 million, leading to a rise in the country’s foreign exchange reserves held by the SBP to a five-and-a-half-month high of $8.22 billion.
Multilateral creditors, including the Asian Infrastructure Investment Bank, World Bank, and Asian Development Bank, were identified as sources of the unexpected inflows. The additional funds bolstered Pakistan’s ability to make timely import payments and foreign debt repayments.
The financial markets had anticipated these inflows after the International Monetary Fund executive board’s final approval for a $700 million loan tranche to Pakistan on January 11, 2023. However, the inflows arrived earlier, surprising the markets.
In a separate trend, gold prices continued their downward trajectory, decreasing by 0.55%, or Rs1,200, to reach Rs217,000 per tola (11.66 grams) in Pakistan on Friday. The decline, observed for the third consecutive working day, resulted in a cumulative drop of almost 2%, or Rs4,300 per tola, over the past three days.
The decrease is attributed to a global downtrend, with gold falling by $9 to $2,058 per ounce (31.10 grams) on Friday, according to the All Pakistan Sarafa Germs and Jewelers Association.
