Pak Rupee Stable Against US Dollar But Loses Big Against British Pound

The Pakistani rupee was stable against the US Dollar today after opening trade at 279 in the interbank market.

It was largely stable against the greenback but managed to stay in the 279-280 range against the $ during intraday trade today.

The interbank rate stayed at 280 most of the day before closing at the 279 level. Open market rates across multiple currency counters were in the 279-280 range today.

The PKR closed at 279.35 against the dollar today.

On a fiscal year-to-date basis, the rupee has so far appreciated by 2.36 percent.

Overall, the rupee is down nearly Rs. 60 since January 2023. Since April 2022, it is down over Rs. 107 against the greenback. As per the exchange rate movements seen today, the PKR was stable today.

In a key development, the close outcome of Pakistan’s election and resulting near-term political uncertainty may complicate the country’s efforts to secure a financing agreement with the IMF, to succeed the Stand-By Arrangement (SBA) expiring in March 2024, says Fitch Ratings.

“Pakistan’s external position has improved in recent months, with the State Bank of Pakistan reporting net foreign reserves of USD 8.0 billion as of 9 February 2024, up from a low of USD 2.9 billion on 3 February 2023. Nevertheless, this is low relative to projected external funding needs, which we expect will continue to exceed reserves for at least the next few years,” said the credit rating agency.

The PKR was red against some of the other major currencies in the interbank market today. It was stable against the Saudi Riyal (SAR) and the UAE Dirham (AED) but lost eight paisas against the Canadian Dollar (CAD).

It lost 66 paisas against the Australian Dollar (AUD), 61 paisas against the Euro (EUR), and Rs. 1.29 against the British Pound (GBP) in today’s interbank currency market.