Rupee rises to two and a half month high at Rs281.26/$
The Pakistani currency continued its gradual rally for the fifth consecutive working day, reaching a two-and-a-half-month high at slightly over Rs281 against the US dollar in the interbank market on Tuesday, according to SBP data. The domestic currency improved by 0.02%, or Rs0.06, closing at Rs281.26 against the greenback.
This fresh surge in the currency is attributed to reports of exporters advancing selling the greenback on futures, anticipating the rupee heading towards Rs280/$ on the upside. Further momentum is expected as new foreign currency inflows are projected from multilateral and bilateral creditors, pending final approval from the IMF executive board for the release of the next loan tranche of $700 million.
Over the past six weeks, the currency has cumulatively increased by 1.57% or Rs4.42, partially aiding in controlling imported inflation in the country.
Read Rupee ticks up to new 10-week high
In the open market, the Exchange Companies Association of Pakistan reported that the currency remained unchanged at Rs282.34/$ for the second consecutive working day. The demand for the greenback has decreased due to the downward trend in international petroleum crude oil prices, as Pakistan heavily relies on energy imports to meet local demand.
Additionally, the supply of US dollars in the markets has continued to rise, supporting the rupee’s upward trajectory.
Published in The Express Tribune, January 10th, 2024.
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