Pakistani Rupee Strengthens for Third Consecutive Day
ISLAMABAD (Dunya News) – The Pakistani rupee maintained its uptrend for the third successive working day, as it further gained 0.36% against the US dollar to close below the psychological level of 260 after a hiatus of 20 days in the interbank market on Friday. The Forex Association of Pakistan (FAP) reported the buying and selling rates of US dollars in the open market to be Rs266.6 and Rs269.3, respectively.
The price of Euro decreased by Rs2.14 and closed at Rs312.56 against the last day’s closing of Rs314.70, according to the State Bank of Pakistan (SBP). The Japanese Yen lost one paisa to close at Rs1.92, whereas the exchange rates of Emirates Dirham and Saudi Riyal decreased by 26 paisas each to close at Rs70.78 and Rs69.29 respectively.
It was reported by bankers that importers are turning to the black market to obtain dollars, thus causing the US currency to become stronger in said market. The request of the exchange companies to the government, to permit them to settle Letters of Credit (LCs) of importations up to $50,000, has been unsuccessful.
With the rupee increasing in value, exporters are offloading their dollars in the market. They had previously held back dollar funds expecting that the value of the local currency would decrease further. Over the past three business days, the currency has appreciated by 0.96%, or Rs2.52.
In the week ending February 17, foreign exchange reserves held by the central bank rose slightly by $66 million, bringing the total to $3.25 billion. The analysts were surprised once again by the latest foreign exchange figures and could not explain why the reserves had increased during the week in question. Analysts believed that the reserves were increasing as a result of increased remittances and exports. Fahad Rauf, the head of research at Ismail Iqbal Securities, commented that inflows have been augmented by remittances and exports, while market sources suggest that the State Bank of Pakistan (SBP) has been procuring US Dollars in order to increase their reserves. Once the board has finished the formalities, the rupee is predicted to gain strength against the United States dollar following the receipt of seven hundred million dollars from the China Development Bank.
0. “Rupee touches one-month high against dollar” The Express Tribune, 25 Feb. 2023, https://tribune.com.pk/story/2403106/rupee-touches-one-month-high-against-dollar
1. “Rupee gains 94 paisas against dollar” The Nation, 24 Feb. 2023, https://www.nation.com.pk/25-Feb-2023/rupee-gains-94-paisas-against-dollar
2. “Rupee weakens on black market amid dollar demand” The News International, 24 Feb. 2023, https://www.thenews.com.pk/print/1043709-rupee-weakens-on-black-market-amid-dollar-demand
3. “Black market in dollars flourishes again – Business – DAWN.COM” DAWN.com, 25 Feb. 2023, https://www.dawn.com/news/1739030
4. “Rupee closes at Rs259.99 – Minute Mirror” Daily Minute Mirror, 25 Feb. 2023, https://minutemirror.com.pk/rupee-closes-at-rs259-99-93761/
5. “Rupee extends winning streak, closes below 260 after 20-day hiatus” The News International, 24 Feb. 2023, https://www.thenews.com.pk/latest/1043798-rupee-extends-winning-streak-closes-below-260-after-20-day-hiatus
6. “Rupee strengthens against dollar – Business – DAWN.COM” DAWN.com, 24 Feb. 2023, https://www.dawn.com/news/1738819
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