The Pakistani currency closed steadily at a one-month high, slightly over Rs284 against the US dollar in the interbank market, maintaining its winning streak for the eighth consecutive working day due to an increase in the supply of foreign currency in the domestic economy.
According to the State Bank of Pakistan (SBP)’s data, the domestic currency ticked up by 0.01% or Rs0.02 to close at a stable Rs284.12 against the greenback.
The currency has cumulatively strengthened by 0.53% or Rs1.52 in the past eight days to date.
The Exchange Companies Association of Pakistan (ECAP) reported that the currency remained unchanged at Rs285/$ for the second successive day in the open market.
Read: Rupee rises for sixth day in a row, gold prices drop
The currency has remained in positive territory as foreign investors continue to invest more in stocks at the Pakistan Stock Exchange (PSX) after quite a long time, helping both the foreign exchange reserves and the rupee stay stable. The reserves, however, have dropped to less than two months’ import cover at $7.02 billion (held by SBP) at present.
Secondly, the Asian Development Bank (ADB) has approved project financing worth $658 million for schools and food security in Pakistan. The inflows would also help improve the foreign exchange reserves and directly support the rupee against the greenback.
Market talks suggest that Pakistan’s export earnings have managed to enhance in recent days. Besides, the inflows of workers’ remittances sent home by overseas Pakistanis have also maintained an uptrend after the currency returned to an uptrend in recent days and remained largely stable in the prior weeks.
Published in The Express Tribune, December 8th, 2023.
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