Rupee Fails to Extend 5-Day Winning Streak Against US Dollar After SBP News

The Pakistani rupee reversed its 5-day winning streak against the US Dollar after opening trade at 279 in the interbank market. But it was largely stable against the greenback today during most of the session. The interbank rate stayed at 279 most of the day before closing at the 278 level. Open market rates across multiple currency counters were in the 278-279 range today. The PKR closed at 278.64 after losing one paisa against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.59 percent. Overall, the rupee is down nearly Rs. 52.38 since January 2023. Since April 2022, it is down Rs. 96.38 against the greenback. As per the exchange rate movements seen today, the PKR lost one paisa today. In a key development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Monday decided to keep the policy rate unchanged at 22 percent. Also, the International Monetary Fund (IMF) has extended the last review of Pakistan’s $3 billion standby arrangement to iron out details. Both sides are expected to reach an agreement tomorrow after a short final round of talks after which a joint statement will be issued. The IMF has asked Pakistan to provide further details of external financing arrangements. The PKR was green against most of the other major currencies in the interbank market today. It was stable against the UAE Dirham (AED) and the Saudi Riyal (SAR), Rs. 1.21 against the British Pound (GBP), and Rs. 1.51 against the Australian Dollar (AUD). It gained 68 paisas against the Canadian Dollar (CAD) and Rs. 1.16 against the Euro (EUR) in today’s interbank currency market.