Pakistan's rupee managed to register another gain against the US dollar, appreciating marginally by 0.01% in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee closed at 174.47 after a day-on-day appreciation of one paisa or 0.01%. On Friday, the currency had appreciated by over Re1 or 0.60% to settle at its highest level since November 23 against the greenback.
This is rupee’s seventh successive gain against the US dollar.
The currency appreciated throughout the previous week to finish with a substantial 1.3% gain as Pakistan earned the International Monetary Fund (IMF) approval for its sixth review of the Extended Fund Facility (EFF).
Rupee records massive gain against US dollar, hits highest level since Nov 23
Last week, the IMF Executive Board completed the sixth review, allowing for an immediate purchase equivalent to about $1 billion for budgetary support.
The development not only ended market uncertainty but also stabilised the local currency. Finance Minister Shaukat Tarin on Saturday said that the rupee would strengthen further while warning market elements involved in speculating and hoarding the dollar.
“Avoid speculations and believe in the value of your rupee,” he said, adding that the rupee will gain further strength.
Meanwhile, Asad Rizvi, an ex-banker, expressed concern pertaining to rising oil prices.
“Though the rupee is stable, the real challenge is elevated oil prices,” Rizvi tweeted.
“With thin fiscal space, high inflation and effort to keep interest rate unchanged, it is a very tough ask to execute and perform, and to get remaining $3 billion IMF loan,” he added, referring to the remaining conditions of the IMF.
Inter-bank market rates for dollar on Monday
BID Rs 174.45
OFFER Rs 174.55
Open-market movement
In the open market, the PKR gained 20 paisas for both buying and selling against USD, closing at 175.80 and 176.80, respectively.
Against Euro, the PKR gained 90 paisas for buying and 50 paisas for selling, closing at 198.60 and 200.50, respectively.
Against UAE Dirham, the PKR gained 48 paisas for buying and 40 paisas for selling, closing at 48.42 and 48.90, respectively.
Against Saudi Riyal, the PKR gained 10 paisas for buying and 15 paisas for selling, closing at 46.20 and 46.65, respectively.
Open-market rates for dollar on Monday
BID Rs 175.80
OFFER Rs 176.80