KARACHI: The rupee witnessed another positive week as it appreciated Re0.61 or 0.21% against the US dollar in the inter-bank market.
It was the fifth consecutive week that the rupee advanced against the dollar, a momentum aided by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA).
Since the announcement of the SLA on November 15, the local unit has gained Rs4.88 or 1.7% against the greenback.
In a related development during the previous week, the Asian Development Bank (ADB), in its latest report, ‘Asian Development Outlook (ADO)’, stated that Pakistan’s overall recovery was still constrained by moderate confidence and high inflation eroding purchasing power.
The bank said Pakistan’s inflation rate averaged 28.5% over July–October, but was expected to ease amid fiscal consolidation and monetary tightening, as well as improved availability of food and key imported inputs.
Meanwhile, the Ministry of Finance (MoF) has asked all ministries/ divisions and entities to meet commitments made with the IMF within the stipulated time to ensure successful completion of the review as well as the overall programme, well-informed sources told Business Recorder.
According to the sources, Secretary of Finance has stated that the second review under the SLA is scheduled to be held in February 2024; therefore, all commitments including structural benchmarks, quantitative performance criteria, indicative targets and other commitments related to 2nd quarter must be met as agreed with the IMF.
In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 281.50 and 284.50, respectively.
Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 308.00 and 311.00, respectively.
Against UAE Dirham, the PKR lost 40 paisa for both buying and selling, closing at 77.50 and 78.20, respectively.
Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 283.25
Offer Close Rs. 283.45
Bid Open Rs. 283.85
Offer Open Rs. 284.05
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Weekly open-market rates for dollar
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Bid Close Rs. 281.50
Offer Close Rs. 284.50
Bid Open Rs. 281.75
Offer Open Rs. 284.75
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Copyright Business Recorder, 2023