KARACHI: The rupee extended gains for the seventh consecutive week as it appreciated Re0.67 or 0.23% against the US dollar in the inter-bank market.
However, the local currency closed 2023 with a depreciation of 19.7% as it had started the year at 226.43 against the greenback in the inter-bank market.
Economic uncertainty on the back of political noise, delay in deal with International Monetary Fund (IMF), and lack of foreign inflows kept the rupee under pressure for most part of the year.
The appreciation in the last seven weeks is aided by the announcement of a staff-level agreement (SLA) between Pakistan and the IMF on the first review of the $3 billion Stand-by Arrangement (SBA).
Since the announcement of the SLA on November 15, the local unit has gained Rs6.28 or 2.18% against the greenback.
In a key development during the previous week, the State Bank of Pakistan (SBP) data showed that foreign exchange reserves held by the SBP witnessed a significant increase of $852 million on a weekly basis, clocking in at $7.75 billion as of December 22.
Total liquid foreign reserves held by the country stood at $12.85 billion.
The SBP attributed the surge in the reserves to official government inflows.
The staff-level agreement is subject to approval by the IMF Executive Board, which is expected to meet on January 11. The IMF inflow will also boost up the SBP reserves. The surge in the forex reserves will leave a positive impact on the rupee in its race against the dollar.
In the open market, the PKR gained 77.00 paisa for buying and 1.28 rupee for selling against USD, closing at 280.23 and 282.72, respectively.
Against Euro, the PKR lost 7.00 paisa for buying and 9.00 paisa for selling, closing at 307.07 and 310.09, respectively.
Against UAE Dirham, the PKR gained 62.00 paisa for buying and 58.00 paisa for selling, closing at 75.88and 76.62, respectively.
Against Saudi Riyal, the PKR gained 47.00 paisa for buying and 49.00 paisa for selling, closing at 74.33 and 75.01, 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. 281.86
Offer Close Rs. 282.06
Bid Open Rs. 282.55
Offer Open Rs. 282.75
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Weekly open-market rates for dollar
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Bid Close Rs. 280.23
Offer Close Rs. 282.72
Bid Open Rs. 281.00
Offer Open Rs. 284.00
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Copyright Business Recorder, 2024