Rupee holds firm near 5-month high
photo: file
The Pakistani currency has remained stable near its recent five-and-a-half-month high for the past couple of days, closing at Rs277.93 against the US dollar in the interbank market on Friday.
The currency has been fluctuating around this level, approaching the significant psychological threshold of Rs277/$. According to the State Bank of Pakistan’s (SBP) data, the rupee closed unchanged at Rs277.93 against the greenback for the second successive day.
It has cumulatively gained 10.50% or Rs29.17 in the past seven months compared to its all-time low closing at Rs207.10/$ in the first week of September 2023.
The Exchange Companies Association of Pakistan (ECAP) reported that the currency improved by Rs0.02 on a day-to-day basis, closing at Rs279.75/$ in the open market.
The currency is maintaining stability amid reports from the central bank indicating that the country’s foreign exchange reserves have continued to improve for the fourth consecutive week, rising to Rs8.04 billion in the week ended March 29, 2024.
The fourth consecutive increase in reserves on a week-on-week basis suggests that the supply of foreign currency has remained high compared to its demand, with the central bank absorbing the surplus supply.
This surplus supply is attributed to exporters selling US dollars on futures counters and overseas Pakistanis sending higher funds to their family members.
Published in The Express Tribune, April 6th, 2024.
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