Pakistan’s rupee recorded another marginal gain against the US dollar, staying in the green for the fourth consecutive session after appreciating 0.01% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee closed at 176.41 after a day-on-day appreciation of two paisas or 0.01%. The rupee had earlier registered a gain of 0.12%, 0.03% and 0.16%, on Friday (last week), Monday, and Tuesday, respectively.
The rupee has been relatively stable against the dollar ahead of a planned meeting of the International Monetary Fund (IMF) Executive Board that would take Pakistan's sixth review of the $6-billion Extended Fund Facility (EFF) on its agenda on February 2.
Rupee gains against US dollar as Pakistan meets IMF condition
Completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under the EFF to about $3,027 million.
Last year, Pakistan and the IMF reached a staff-level agreement on policies and reforms needed to complete the sixth review.
Meanwhile, Pakistan's reserves position is tipped to improve after the government successfully raised $1 billion through the issuance of an International Sukuk.
“The transaction generated great interest as leading global investors from Asia, Middle East, Europe and the US participated in the order book,” read an official statement.
However, rising oil prices in the international market are likely to maintain pressure on the currency.
“Higher oil price is widening the current account deficit and imports need to be curtailed or else pressure will exert on the fragile recovery which will increase risk around macro stability,” said Asad Rizvi, ex-treasury head at Chase Manhattan Bank.
Oil prices surged further on Wednesday toward last week's seven-year highs as a draw in US crude stocks confirmed strong demand and a lack of supply.
Brent crude rose 17 cents, or 0.2%, to $89.33 a barrel, and US West Texas Intermediate crude was up 16 cents, or 0.2%, at $88.36 a barrel.
Inter-bank market rates for dollar on Wednesday
BID Rs 176.35
OFFER Rs 176.45
Open-market movement
In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 176.50 and 177.50, respectively.
Against Euro, the PKR lost 40 paisas for buying while remaining unchanged for selling, closing at 198.50 and 200, respectively.
Against UAE Dirham, the PKR gained 10 paisas for buying and 20 paisas for selling, closing at 49.10 and 49.50, respectively.
Against Saudi Riyal, the PKR remained unchanged for buying while gaining 15 paisas for selling, closing at 46.70 and 47, respectively.
Open-market rates for dollar on Wednesday
BID Rs 176.50
OFFER Rs 177.50