RECORDER REPORT

KARACHI: Pakistan’s rupee maintained its upward trajectory against the US dollar for the seventh straight session on Monday, closing over 0.5% higher in the inter-bank market. As per the State Bank of Pakistan (SBP), the rupee closed at 227.29 after appreciating Rs1.16 or 0.51%. In the last seven trading sessions, the rupee has cumulatively appreciated Rs12.41 or 5.45%. During the previous week, the rupee gained nearly 5%, appreciating in value across all the five sessions against the US dollar as the return of Ishaq Dar at helm of Pakistan’s economic affairs gave impetus to bullish sentiment in the money market.

The rupee closed at 228.45 in the inter-bank market on Friday as the US dollar index, which measures the greenback against the euro, sterling and four other major peers, also moved lower.

Analysts said the return of Dar, widely seen as an advocate of a strong rupee, and measures taken by the SBP also reduced speculation activity, evident also by the hefty gains posted by the local currency in the open market.

Moreover, the central bank in a move to promote documentation and transparency in the foreign exchange transactions, made it mandatory that the Pakistan Rupee consideration of currency exchange (CE) transactions between Exchange Companies (ECs), Exchange Companies “B” category and franchises of Exchange Companies are conducted through bank accounts.

“The ongoing appreciation drive of rupee is sentiment based,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, told Business Recorder.

“The expectations of loan disbursements from multilateral and bilateral institutions and relaxation of loan conditions by international lenders are also driving the positive sentiment,” he said.

Moreover, the central bank’s latest move is also playing a role as well, said Tariq.

Internationally, the dollar maintained its grip against other currencies. The US dollar index rose 0.06% to 112.30. So far this year, the dollar index has soared almost 17%.

Oil prices, a key indicator of currency parity, jumped almost $4 on Monday as OPEC+ considers reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.

Open-market

movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 228 and 230, respectively.

Against Euro, the PKR gained one rupee for both buying and selling, closing at 224 and 226 respectively.

Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 63 and 63.50, respectively.

Against Saudi Riyal, the PKR gained 30 paisas for buying and 40 paisas for selling, closing at 60.50 and 61, respectively.

LAHORE

The Pak rupee slightly lost its previous week strength at the very outset of trading on Monday in the local currency market. It may be noted that the Pak rupee had continued an upward journey throughout the last week after the return of federal finance minister Ishaq Dar to the country.

However, selling pressure crept in the market, thus improving the supply of greenback which helped the US dollar to regain its position for buying and selling atRs226.50 and Rs228.50 against the Thursday’s closing of Rs225.00 and Rs227.25, respectively, local currency dealers said.

However, the rupee gained strength against the pound sterling after shedding its value for a while at the weekend. As a result, the rupee’s buying and selling rates rose from the Friday’s closing of Rs252.00 and Rs254.00 to Rs254.00 and Rs256.50, respectively.