During interbank trading on Friday, the Pakistani rupee (PKR) rose significantly against the US dollar, reaching a high of 261.
At the end of the trading day, the Pakistani rupee had increased in value by 0.59%, and its movement ceased at 262.82. It had gained Rs. 156 compared to the US dollar.
The Pakistani rupee showed strength against the US dollar in the open market, opening at 264 and then reaching around 262 midday before ending the day at 262.82 after gaining 0.59 percent or Rs. 156 against the dollar.
Today’s increase in the value of the PKR was attributed to the anticipated approval and implementation of the Finance (Supplementary) Bill 2023 in the upcoming session of the National Assembly, as well as expectations of a staff-level agreement with the IMF.
Despite the gains, the rupee is still down over Rs. 28 since its record-breaking drop of Rs. 25 in January. Money changers believe that the remaining months until June are crucial in determining the PKR’s trend for the next financial year and that reserves need to be revitalized, with a focus on saving the treasury rather than development spending.
As of February 10, the State Bank of Pakistan (SBP) had foreign currency reserves worth $3.192 billion, which increased by $276 million compared to the previous week’s reserves of $2.916 billion.
However, despite the increase, the central bank’s reserves are still at their lowest level since February 2014. The total liquid foreign currency reserves held by the country, including net reserves held by other banks, amounted to $8.702 billion, which was up by $163 million from the previous week. The net reserves held by banks were $5.509 billion, down by $114 million during the week.
In the interbank market, the Pakistani rupee gained against major currencies, including a 42 paisas increase against the Saudi Riyal (SAR), a 42 paisas increase against the UAE Dirham (AED), and a Rs. 3.2 increase against the Canadian Dollar (CAD), and a Rs. 3.4 increase against the Euro (EUR).
In addition, in today’s interbank currency market, the Pakistani rupee increased by Rs. 3.59 against the Australian dollar (AUD) and by Rs. 5.31 against the British pound sterling (GBP).