The Pakistani rupee (PKR) continued its upward trajectory for the second consecutive day, closing in green against the US Dollar (USD) and recording gains against several major global currencies in the interbank market.
The PKR opened trading at 279/$ and remained relatively stable throughout the day, closing at 278.36 after appreciating by 0.04%, a gain of 11 paisas against the USD. In the open market, the exchange rates hovered between 278 and 281/$, reflecting a steady performance.
On a fiscal year-to-date basis, the rupee has shown resilience, with only a marginal depreciation of 0.17%, highlighting its relative stability amidst fluctuating global currency dynamics.
In addition to its performance against the US Dollar, the PKR made notable gains against other major currencies. It appreciated by two paisas against the UAE Dirham (AED) and remained stable against the Saudi Riyal (SAR). Against the Canadian Dollar (CAD), the rupee gained eight paisas, while it appreciated by four paisas against the Euro (EUR) and 29 paisas against the British Pound (GBP). The Australian Dollar (AUD) also saw a decline against the PKR, with the latter gaining 21 paisas in the interbank market.
The continued recovery of the PKR is attributed to a combination of factors, including improved foreign exchange inflows, effective monetary policies, and efforts to address external account pressures. Analysts suggest that the stabilization of the currency is a positive sign for the economy, as it eases inflationary pressures and bolsters investor confidence.
Market observers note that the rupee’s recent performance is reflective of a broader trend of stability in Pakistan’s currency market. This is bolstered by ongoing reforms and measures aimed at improving the balance of payments and curbing speculative trading.
Despite these gains, experts urge caution, emphasizing the need for sustainable policies to maintain the rupee’s strength in the face of global economic uncertainties, fluctuating oil prices, and geopolitical tensions that could impact foreign exchange reserves.
As Pakistan enters the final week of 2024, the rupee’s performance offers a glimmer of optimism for the new year. The steady recovery not only signals a potential improvement in macroeconomic indicators but also enhances the prospects for foreign investment and economic growth in the coming months.
The PKR’s resilience against major currencies underscores the importance of continued fiscal discipline and prudent monetary policies to ensure long-term economic stability. Stakeholders will be closely watching the currency market for further signs of improvement as 2025 approaches.
