Rupee stays at three-month high

With uptick, currency has cumulatively surged 9.87%

KARACHI:

Pakistani currency on Wednesday hit a new three-month high at Rs279.50 against the US dollar in the inter-bank market, indicating that inflows of the greenback remained higher than the demand.

Dollar supply is relatively better apparently in the wake of increase in workers’ remittances and sales of dollars by exporters on forward counters in the market. According to SBP data, the rupee strengthened 0.02%, or Rs0.05, on a day-on-day basis.

With the uptick, the currency has cumulatively surged 9.87%, or Rs27.60, in the past four months compared to the all-time low of Rs307.10/$ touched in the first week of September 2023.

Read Policy status quo helps rupee resume uptrend

Exchange Companies Association of Pakistan reported that the rupee remained unchanged at Rs280.86/$ for the second successive working day in the open market. SBP Governor Jameel Ahmad said on Monday that workers’ remittances and export earnings ,the two major income sources, rose, playing a pivotal role in financing the import of goods and services.

It has been learnt that the government has decided to restrict imports at a level equal to the sum of remittances and export proceeds to manage and keep the current account balance at breakeven level.

Published in The Express Tribune, February 1^st, 2024.

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