Rupee steady as forex reserves rise

KARACHI:

Pakistani currency on Thursday remained steady at over five-month high at Rs278.03 against the US dollar in the inter-bank market, maintaining its uptrend for the 11th successive working day amid a slight pickup in foreign exchange reserves at $8.02 billion.

Besides, gold hit over six-and-a-half-month high at Rs231,000 per tola (11.66 grams) in line with the surge in global markets.

According to SBP data, the rupee inched up Rs0.01 against the greenback, closing stable at Rs278.03/$.

The currency has cumulatively gained 10.45%, or Rs29.07, in the past over six and a half months compared to the record low close at Rs307.10/$ in the first week of September 2023. Exchange Companies Association of Pakistan reported that the local currency increased 0.06%, or Rs0.19, on a day-on-day basis and closed at Rs280.41/$ in the open market. The rupee has maintained its uptrend in the wake of higher supply of foreign currency compared to its demand.The central bank is apparently absorbing the surplus supply of dollars, which has led to the rise in the foreign exchange reserves.

Published in The Express Tribune, March 29^th, 2024.

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