Rupee jumps to 276.46 versus dollar as reserves get $4.2bn boost
KARACHI, (TLTP): Pakistani rupee strengthened against the US dollar in the interbank market for the third straight session on Thursday by Rs1.02 (+0.37 percent) .
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 277.48 against the dollar in the interbank market and closed at 276.46. The rupee appreciated by Rs1.09 and Rs1.24 against the US dollar in the interbank sessions on Tuesday and Wednesday respectively.
Similarly, the local unit appreciated against the greenback in the open market by Rs3 (+1.09 percent). The rupee was quoted in the range of 275-278 against the dollar in the open market as compared to 278-279 a session earlier. In the black market/Hundi, the dollar was quoted at Rs293 against Rs295 a session earlier.
During the recently started fiscal year 2023-24, Pakistani rupee has gained Rs9.53 against the US dollar in the interbank market, while it plummeted by Rs49.03 against the greenback in the current year.
Finance Minister Ishaq Dar said on Thursday that the International Monetary Fund (IMF) has transferred $1.2 billion to the central bank’s account. The global money lender approved a $3 billion loan agreement for Pakistan a day earlier. He said that the funds would shore up Pakistan’s foreign exchange reserves, noting that this would also include the $1bn transferred by the United Arab Emirates a day earlier and $2bn transferred by Saudi Arabia. The minister said that there had been a $4.2bn increase in the SBP’s reserves during the week.
The IMF agreement already resulted in Fitch Ratings upgrading Pakistan’s sovereign rating to ‘CCC’ from ‘CCC-’ on Monday last, providing some respite to investors in the nation’s stocks and bonds. Following the announcement of the Saudi help, Pakistan’s sovereign dollar bonds increased in value by as much as 1.8 cents, according to data from Tradeweb.
However, the rupee’s surge is predicted by some analysts to be temporary. Given that imports appear to be only partially open, the currency appears to trade range-bound in the short term. According to commentators, banks won’t open fresh letters of credit unless there are enough dollar inflows in the nation. TLTP
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