The Pakistani rupee (PKR) continued its upward trajectory for the fourth consecutive day on Thursday, strengthening against the US Dollar (USD) after opening at 278 in the interbank market. The rupee maintained stability throughout the trading session, closing slightly higher against the greenback. However, it experienced depreciation against several other major currencies during the day.
Throughout the trading day, the interbank rate for the PKR remained steady at 278/$, ultimately closing at the same level. Open market rates across various currency counters also held firm at 278, reflecting consistent trading conditions. The PKR appreciated by 0.10 percent, closing at 278.1, marking a gain of 27 paisas against the USD.
On a fiscal year-to-date basis, the Pakistani rupee has seen a minor depreciation of 0.07 percent. Despite today’s positive performance against the USD, the rupee’s overall position has shown some weakness when compared to the beginning of the fiscal year.
A significant development that may influence future currency movements occurred on Thursday when the International Monetary Fund (IMF) confirmed that its Executive Board is scheduled to meet on September 25 to review the $7 billion Extended Fund Facility (EFF) for Pakistan. This announcement is expected to be a critical factor for the rupee’s performance in the near term.
In related news, State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that Pakistan has secured the $2 billion in external financing required for the IMF program. This milestone is anticipated to facilitate IMF board approval within the current month, which could provide additional support to the PKR.
While the rupee showed gains against the USD and some regional currencies, it experienced losses against other major currencies. Specifically, it gained seven paisas against both the UAE Dirham (AED) and the Saudi Riyal (SAR), and saw a 16 paisa increase against the Canadian Dollar (CAD). Conversely, the rupee depreciated by Rs. 1.21 against the Australian Dollar (AUD), Rs. 2.05 against the Euro (EUR), and Rs. 2.83 against the British Pound (GBP).
This mixed performance highlights the variability in the rupee’s strength across different currency pairs, reflecting broader market conditions and economic factors influencing the exchange rates.
Overall, the PKR’s recent gains against the USD are a positive indicator of market stability and investor confidence. However, the broader context of currency depreciation against other major currencies and the forthcoming IMF board meeting will be crucial in shaping future currency trends. Investors and market participants will be closely watching these developments to gauge their potential impact on the PKR and the broader economic landscape.