Pakistan's rupee stays unchanged against US dollar

Pakistan's rupee remained unchanged against the US dollar and closed just above the 170 level in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the PKR remained at 170.01 against the USD.

The rupee earlier ended its six-day appreciation run on Thursday.

On October 26, the PKR had dropped to its lowest level, closing over the 175 level for the first time.

However, since then, the rupee has gained 3.1% on the back of Saudi Arabia's $4.2 billion support package for Pakistan, and some level of clarity regarding the International Monetary Fund (IMF) Extended Funded Facility (EFF) programme, after statements given by the central bank chief and finance advisor.

“I believe there is further room for rupee appreciation, following resumption of the IMF programme,” Tahir Abbas, Head of Research at Arif Habib Limited, told Business Recorder.

Rupee's appreciation run ends, closes over 170 against US dollar

He added Pakistan expects to receive inflows to the tune of $1 billion, which could help the rupee appreciate to around 167. "However, the upcoming balance of payment numbers would have an impact as well."

The IMF programme is seen by many as an important one for Pakistan under which it gets access to foreign currency reserves. However, in return, the country has to show "reforms, and restructuring of the economy". On occasions, this involves privatisation, levying new taxes, and increasing power tariffs. While the IMF says it is to control circular debt, authorities in Pakistan tend to resist this as it causes cost of production to increase.

Inter-bank market rates for dollar on Friday

BID Rs 170.15

OFFER Rs 170.25

Open-market movement

In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 171 and 172, respectively.

Against Euro, the PKR lost 1.50 rupees for buying and 1.60 rupees for selling, closing at 196.50 and 198.50, respectively.

Against UAE Dirham, the PKR gained 10 paisas for buying and 15 paisas for selling, closing at 47.60 and 48, respectively.

Against Saudi Riyal, the PKR lost 30 paisas for buying and 35 paisas for selling, closing at 45 and 45.45, respectively.

Open-market rates for dollar on Friday

BID Rs 171

OFFER Rs172