KARACHI: The rupee extended its winning streak for the second week as it appreciated 0.39% or Rs1.13 against the US dollar in the inter-bank market. The local currency gained in the first three days of the week.
However, it edged lower in the remaining two sessions. It was the second consecutive week that the rupee appreciated against the dollar.
Earlier, the local currency had 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).
In a key development, Caretaker Federal Minister for Finance Dr Shamshad Akhtar said political and economic instability over a period of time had greatly disrupted Pakistan’s economic growth, which should be backed by structural reforms.
The finance czar also reported positive signs of economic recovery, expecting the country’s GDP growth between 2 to 2.5% in the fiscal year 2024. Meanwhile, the Federal Board of Revenue (FBR) has given a deadline of November 30, 2023, to banks for payment of 40% additional tax on windfall income, profits, and gains during calendar years 2021 and 2022.
In a related development, Pakistan’s Foreign Direct Investment (FDI) rose by 7% during the first four months of this fiscal year (FY24), the State Bank of Pakistan reported. Overall, Pakistan fetched FDI amounted to $525 million in July-Oct of FY24 as against $490 million in corresponding period of last fiscal year (FY23), showing an increase of $35 million.
Internationally, the US dollar was restrained on Friday by uncertainty over the path of US interest rates, while the euro held overnight gains as data hinted that the downturn in the eurozone may be easing. In the open market, the PKR gained 1.75 rupees for both buying and selling against USD, closing at 283.50 and 286.50, respectively.
Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 309.00 and 312.00, respectively.
Against UAE Dirham, the PKR gained 80 paisa for both buying and selling, closing at 77.50 and 78.20, respectively.
Against Saudi Riyal, the PKR gained 10 paisa for buying and 20 paisa for selling, closing at 75.70 and 76.30, 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. 285.35
Offer Close Rs. 285.55
Bid Open Rs. 286.50
Offer Open Rs. 286.70
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Weekly open-market rates for dollar
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Bid Close Rs. 283.50
Offer Close Rs. 286.50
Bid Open Rs. 285.25
Offer Open Rs. 288.25
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Copyright Business Recorder, 2023