- With a fresh increase of 0.09%, rupee settles at Rs174.71.
- Appreciation comes on back of increase in foreign exchange reserves.
- Forex reserves surged 10.23% on a weekly basis.
KARACHI: The ongoing wave of rupee appreciation continued on the last day of the trading week as the currency gained a fresh 0.09% to Rs174.71 against the US dollar in the inter-bank market.
The appreciation came on the back of an improvement in macroeconomic indicators, and an increase in foreign exchange reserves.
A day earlier, the local unit closed at Rs174.87 against the greenback, according to the State Bank of Pakistan (SBP).
Currency dealers believe that the local currency is in its stabilisation phase and the movement will depend on the economic data, particularly trade numbers.
A dealer said: “We expect the local unit to follow a range-bound trading pattern in coming days. Though dollar inflows are healthy, aggressive dollar buying from importers and the corporate sector may result in demand exceeding supplies of the US currency, putting pressure on the local unit.”
With the fresh increase of 0.09%, the Pakistani rupee has depreciated by 10.89% (or Rs17.17) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
The rupee had maintained a downward trend for the past nine months. It has lost 14.73% (or Rs22.44) to date, compared to the record high of Rs152.27 recorded in May 2021.
Earlier, Pakistan-Kuwait Investment Company’s Head of Research and Development Samiullah Tariq had said: “Rupee is in correction mode.” Tariq had predicted that the Pakistani currency should trade in the range of Rs174-176.
SBP reserves surge by 10.23%
The foreign exchange reserves held by the central bank surged 10.23% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On February 4, the foreign currency reserves held by the SBP were recorded at $17,336.8 million, up $1,609 million compared with $15,727.6 million on January 28.
According to the central bank, the increase came due to the receipt of $1,053 million from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme and proceeds against Pakistan International Sukuk Bond issuance of $1,000 million.
Rupee will move upward again: Tarin
Last week, Federal Minister for Finance and Revenue Shaukat Tarin had said that the Pakistani rupee has started to gain ground against the US dollar after the release of the $1 billion tranche by the International Monetary Fund (IMF).
Speaking to PTV News in Beijing, Tarin had said the rupee will continue to appreciate against the greenback. He added that he had been saying from the very beginning that there will be appreciation in the value of the Pakistani rupee.
The minister said he had warned “speculators and hoarders” that the rupee will move upward and “I am saying this again that the rupee will move [upward] again”. They should keep faith in their “own rupee”, he had added.
وفاقی وزیر خزانہ شوکت ترین کی چین سے وزیراعظم کے دورے کے حوالے سے اہم
گفتگو …@shaukat_tarin @FinMinistryPak #PMIKinChina pic.twitter.com/94ZIgWF0kJ
— PTV News (@PTVNewsOfficial) February 5, 2022