KARACHI: The rupee appreciated nearly 1.1% during the previous week, as news of inflow of $700 million from China boosted sentiment, helping the currency close at 259.99 against the US dollar in the inter-bank market.
The currency has been on a gaining spree since it hit its all-time low of over 276 earlier in February, with realisation of export proceeds and higher flow of remittances through legal channels aiding the recovery.
At the same time, Pakistan reported a slight increase in its central bank-held foreign exchange reserves for the second successive week. Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased $66 million to $3.26 billion, data released on Thursday showed. However, the level is still at less than one month of import cover, and underscores the urgent need for authorities to revive the stalled International Monetary Fund (IMF) programme.
While Pakistan has moved to implement prior conditions of the bailout programme, including taxation measures, higher energy tariffs, and a flexible exchange-rate, a staff-level agreement has yet to be reached. Without the IMF programme, analysts say, the rupee is likely to remain under pressure in the medium- to long-term.
Open-market rates
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 265 and 268, respectively.
Against Euro, the PKR gained 1.50 rupees for both buying and selling, closing at 277.00 and 280.00, respectively. Against UAE Dirham, the PKR lost 1.80 rupee for buying and 1.70 rupee for selling, closing at 74.50 and 75.20, respectively. Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 70.00 and 70.70, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 259.95
Offer Close Rs. 261.95
Bid Open Rs. 262.80
Offer Open Rs. 264.80
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Weekly open-market rates for dollar
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Bid Close Rs. 265.00
Offer Close Rs. 268.00
Bid Open Rs. 265.00
Offer Open Rs. 268.00
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Copyright Business Recorder, 2023