The Pakistani currency strengthened by Rs0.09, closing at a nearly one-week high of Rs278.21 against the US dollar in the inter-bank market. This uptrend continued for the second consecutive day, buoyed by reports of progress in talks aimed at attracting multibillion-dollar foreign investments from friendly countries. The State Bank of Pakistan (SBP) reported that the domestic currency had concluded at Rs278.30 against the greenback on Thursday.
This appreciation coincided with the ongoing growth in foreign exchange reserves, which reached a 10-month high of $9.15 billion, lending support to the rupee’s strength.
The Pakistani rupee has experienced a cumulative increase of 10.38% or Rs28.89 in the past eight-and-a-half months. The surge in the local currency follows Prime Minister Shehbaz Sharif’s success in securing a commitment of $10 billion investment from UAE rulers and Saudi Arabia’s advancements in talks to invest in Pakistan’s mining sector by acquiring stakes in Reko Diq.
This projected influx of multibillion-dollar investment is expected to enhance foreign currency inflows and bolster foreign exchange reserves, which bodes well for the rupee.
Gold prices witnessed a two-week low at Rs240,200 per tola (11.66 grams) in Pakistan, reflecting a downward trend in the commodity’s global market performance on Friday, marking the second successive day of decline. The metal experienced a decrease of Rs1,800/ per tola during the day, totalling a decline of Rs8,000 per tola over the past two days. The All Pakistan Sarafa Gems and Jewellers Association reported a $17 per ounce (30.10 grams) decrease in the commodity’s price to $2,338 for the day, summing up to a $77 per ounce drop over the two days.
Published in The Express Tribune, May 25th, 2024.
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