Largely stable

09 Dec, 2024

KARACHI: Rupee remained largely stable against the US dollar in the inter-bank market during the previous week. The local unit closed at 278.01, against 278.05 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

In a key development, Pakistan’s headline inflation hit its lowest level since May 2018, clocking in at 4.9% on a year-on-year basis in November 2024, a reading that was also below that of October 2024 when it stood at 7.2%, showed Pakistan Bureau of Statistics (PBS) data.

On a month-on-month basis, CPI increased by 0.5% in November 2024 as compared to an increase of 1.2% in the previous month and an increase of 2.7% in November 2023.

Foreign exchange reserves held by the SBP increased by $620 million on a weekly basis, clocking in at $12.04 billion as of November 29. Total liquid foreign reserves held by the country stood at $16.62 billion. Net foreign reserves held by commercial banks stood at $4.58 billion.

The Saudi Fund for Development (SFD) extended the term for a deposit of $3 billion maturing on December 5, 2024 for another year to support Pakistan’s economy. A deposit agreement for $3 billion was initially signed with the SFD in the year 2021 and subsequently rolled over in 2022 and 2023.

Meanwhile, the central bank is seen further reducing the key policy rate by at least 200 basis points (bps) in line with the slowing pace of inflation and improved economic indicators, a brokerage house survey stated. The Monetary Policy Committee (MPC) of the SBP is scheduled to meet on December 16, 2024.

Open-market rates

In the open market, the PKR gained 6 paise for buying and 9 paise for selling against USD, closing at 277.25 and 278.98, respectively.

Against Euro, the PKR lost 50 paise for buying and gained 15 paise for selling, closing at 291.97 and 294.15, respectively.

Against UAE Dirham, the PKR lost 16 paise for buying and 1 paisa for selling, closing at 75.43 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 15 paise for buying and 2 paise for selling, closing at 73.68 and 74.20, 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. 278.01

Offer Close Rs. 278.21

Bid Open Rs. 277.76

Offer Open Rs. 277.96

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Weekly open-market rates for dollar

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Bid Close Rs. 277.25

Offer Close Rs. 278.98

Bid Open Rs. 276.98

Offer Open Rs. 278.77

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Copyright Business Recorder, 2024

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