KARACHI: The rupee snapped its losing streak as it closed the week 0.18% or Re0.53 higher in the inter-bank market against the US dollar.
The local currency rebounded from 4-week losses, helped by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on first review of the $3 billion Stand-by Arrangement (SBA).
During the week, the rupee continued its downtrend till Wednesday, before the IMF announced that its staff and Pakistani authorities had reached an agreement on first review of the nine-month SBA.
On Thursday, the rupee finally ended its 17-session depreciation run against the US dollar as it appreciated 0.26% in the inter-bank market, followed by 0.31% appreciation on Friday.
The staff-level agreement between the IMF and Pakistan is subject to approval of the IMF’s Executive Board. Upon approval, around $700 million will become available bringing total disbursements under the programme to almost $1.9 billion, the IMF said in its statement.
Speaking to the media after the SLA reached with the IMF, Caretaker Finance Minister Dr Shamshad Akhtar said external financing would not be an issue as the government expects inflow in December 2023, which would help increase the foreign exchange reserves.
Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) fell by $115 million on a weekly basis, clocking in at $7.4 billion as of November 10. In the open market, the PKR lost 25 paisa for both buying and selling against USD, closing at 285.25 and 288.25, respectively.
Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 308.00 and 311.00, respectively.
Against UAE Dirham, the PKR gained 1.50 rupee for both buying and selling, closing at 78.30 and 79.00, respectively. Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 75.80 and 76.50, 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. 286.50
Offer Close Rs. 286.70
Bid Open Rs. 287.05
Offer Open Rs. 287.25
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Weekly open-market rates for dollar
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Bid Close Rs. 285.25
Offer Close Rs. 288.25
Bid Open Rs. 285.00
Offer Open Rs. 288.00
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Copyright Business Recorder, 2023