Rupee maintains momentum, registers seventh straight gain against US dollar

The rupee maintained its upward trend for the seventh consecutive session, as the currency appreciated 0.02% against the US dollar in the inter-bank market — the first time the market was open on a Saturday after the new government increased the number of working days during a week.

As per the State Bank of Pakistan (SBP), the rupee closed at 181.55 after a day-on-day appreciation of 3 paisas, or 0.02%. Last week on Friday, the local currency had recorded its biggest increase on a day-to-day basis in the inter-bank market in two years after it closed at 184.68.

In the last seven trading sessions, the rupee has appreciated by 3.6%, a remarkable turnaround for a currency that had hit its record low last week. However, gains in the last two sessions have been smaller, suggesting the rupee will stabilise around this level.

Rupee marches upwards for sixth straight session against US dollar

Market experts say the appreciation run has come on the back of political clarity after the opposition successfully passed the no-confidence motion and a new government, led by Prime Minister Shehbaz Sharif, eased pending concerns.

“The return of political clarity has led to the appreciation run,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company, told Business Recorder.

The expert informed that there are expectations of inflows from foreign lenders next week, which has added to the positive sentiment. “We believe that rupee will stabilise to the 180-181 range."

The rupee has remained under pressure for months now as Pakistan's foreign exchange reserves continue to decline, adding to negative sentiment.

Foreign exchange reserves held by the country’s central bank fell another $470 million on a weekly basis to reach a critical $10.85 billion, revealed central bank data on Thursday. This is the lowest reserve-level since June 2020.

Inter-bank market rates for dollar on Saturday

BID Rs 181.45

OFFER Rs 181.55

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 181 and 182, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 195 and 196.50, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 48.10 and 49.50, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 48.20 and 48.60, respectively.

Open-market rates for dollar on Saturday

BID Rs 181

OFFER Rs 182