Rupee Closes in Red Against US Dollar, British Pound Despite Good News From SBP

The Pakistani rupee (PKR) closed in red against the US Dollar today after opening trade at 278 in the interbank market. It was bearish all day and closed in red against the greenback second day in a row. Meanwhile, it posted losses against most of the other major currencies during today’s session. The interbank rate stayed at 278/$ most of the day before closing at the same level. Open market rates across multiple currency counters were strictly at 278-279 today. The PKR depreciated by 0.06 percent and closed at 278.65 after losing 16 paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far depreciated by 0.11 percent. Overall, the rupee is down nearly Rs. 51.75 since January 2023. Since April 2022, it is down Rs. 95.75 against the greenback. As per the exchange rate movements seen during the session, the PKR lost 16 paisas today. The State Bank of Pakistan (SBP) on Monday decreased the interest rate by 100 basis points to 19.5 percent. The Monetary Policy Committee observed that the June 2024 inflation was slightly better than anticipated. The Committee also assessed that the inflationary impact of the FY25 budgetary measures was broadly in line with earlier expectations. The external account has continued to improve, as reflected by the build-up in SBP’s FX reserves despite substantial repayments of debt and other obligations. The PKR was green against some of the other major currencies in the interbank market today. It gained one paisa against the Canadian Dollar (CAD) and 34 paisas against the Euro (EUR). Meanwhile, it lost four paisas against the UAE Dirham (AED), four paisas against the Saudi Riyal (SAR), 35 paisas against the Australian Dollar (AUD), and Rs. 1.22 against the British Pound (GBP) in today’s interbank currency market.