The Pakistani rupee (PKR) showed signs of strength this week, appreciating by approximately 18 paisa against the US dollar, settling at PKR 278.21 per USD compared to last week’s closing of PKR 278.39 per USD. Notably, in today’s session alone, PKR gained over 9 paisa against the USD.
During Friday’s trading session, the currency fluctuated, reaching an intraday high (bid) of 278.7 and a low (ask) of 278.5.
In the open market, exchange companies quoted the dollar at 276.82 for buying and 279.48 for selling.
This week, the PKR experienced a slight rebound, partly due to the positivity surrounding the International Monetary Fund’s (IMF) immediate disbursement of around $1.1 billion to Pakistan under the $3 billion standby arrangement. This disbursement is expected to bolster the country’s reserves, with the amount set to be reflected in the State Bank of Pakistan’s reserves for the week ending on May 03, 2024.
It’s worth noting that Pakistan’s 9-month Standby Arrangement (SBA), approved by the IMF Executive Board on July 12, 2023, has provided vital support in addressing domestic and external imbalances and establishing a framework for financial support from multilateral and bilateral partners.
Despite the positive movement against the US dollar, the PKR faced mixed results against other major currencies. Against the Euro, PKR lost 73.79 paisa, closing at 298.85 compared to the previous value of 298.12. Conversely, the British Pound became more expensive by 81.89 paisa, closing at 349.33 compared to 348.52 from a day ago.
In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates saw a slight increase of 2 bps to 21.35% and 21.6%. Additionally, the State Bank of Pakistan conducted reverse repo and Shariah-compliant Modarabah-based Open Market Operations, injecting a total of Rs10.61 trillion into the market, with the majority injected through reverse repo OMO.
