Pak Rupee Registers Marginal Gain Against US Dollar

Fri May 17 2024
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ISLAMABAD: After a slight decline of 22 paisa during last two days, the Pakistani rupee witnessed a marginal gain of 30 paisa against the US dollar in the inter-bank market on Friday.

At close the local currency settled at Rs278.10, against the previous day closing of Rs278.40, according to the State Bank of Pakistan (SBP).

Meanwhile, the US dollar witnessed fluctuation against other international currencies during last couple of days amid signs of cooling inflation and a softening US economy increased the prospect of rate cuts.

Pak Rupee Against US Dollar

Recently the local currency registered both appreciation and depreciation, against the American dollar with recent continues improvement. From September, till middle of October 2023, the local unit recorded appreciation for record 28 consecutive sessions against the American dollar, followed by continues decline for 17th consecutive sessions from October till middle of November, 2023.

However, at the end of December 2023, and then in January 2024, the Pakistani Rupee mostly witnessed appreciation against the greenback amid the inflow from the IMF followed by $2b roll over each from the UAE (January) and China (February). As a result, the Pakistani rupee improved by over Rs7 in the interbank during last two to three months.

In another recent development Pakistan received $1.1 billion from the International Monetary Fund (IMF) as a final tranche of the $3 billion Stand-By Arrangement (SBA), on April 30. Pakistan is now eyeing to get a longer program from the IMF to further overcome the economic quagmire. However, the expected program might be followed by inflation and price hike amid tough conditions from the lending body in shape of further taxation.

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