Rupee Rises to 278 Against US Dollar For First Time Since October

The Pakistani rupee reversed Monday’s losses against the US Dollar after opening trade at 278 in the interbank market. It was bullish against the greenback today. The interbank rate stayed at 278 most of the day before closing at the same level. Open market rates across multiple currency counters were in the 278-279 range today. The PKR appreciated by 0.1 percent to close at 278.79 after gaining 29 paisas against the dollar today. This is the first time after 5 months that the local unit has closed at the current level against the greenback, our research showed. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.55 percent. Overall, the rupee is down nearly Rs. 52.52 since January 2023. Since April 2022, it is down Rs. 96.52 against the greenback. As per the exchange rate movements seen today, the PKR gained nearly 30 paisas today. This comes just shortly after the Ministry of Finance expressed confidence that the International Monetary Fund will release the third and final tranche of the Stand-By Arrangement (SBA) to Pakistan soon. “Staff-level agreement is expected after this appraisal. Once Staff level agreement is reached, the final tranche of $1.1 billion will be disbursed, following the approval of the Executive Board of IMF, the ministry said in a statement earlie today. Traders expect the currency market to build on current bullish patterns for gains up to at least 275 till disbursal of bailout. “Further gains will be subject to announcement of new and much bigger bailout in the coming months but a big drop isn’t far despite short-term positives,” a trader told ProPakistani. The PKR was green against all of the other major currencies in the interbank market today. It lost seven paisas against the UAE Dirham (AED), seven paisas against the Saudi Riyal (SAR), 71 paisas against the Euro (EUR), and Rs. 1.85 against the British Pound (GBP). Meanwhile, it gained 32 paisas against the Canadian Dollar (CAD) and 32 paisas against the Australian Dollar (AUD) in today’s interbank currency market.