Karachi, November 22, 2024 – The Pakistani rupee appreciated by 16 paisas against the US dollar during intraday trading on Friday. The dollar is currently trading at PKR 277.80, down from the previous day’s closing of PKR 277.96 in the interbank foreign exchange market.
The rupee’s gain against the dollar follows a boost in market confidence, driven by recent reassurances from the Army Chief regarding security and stability during a meeting with the business community in Karachi.
Currency analysts noted that positive economic indicators have supported the rupee’s appreciation to the dollar. The State Bank of Pakistan (SBP) reported a $29 million increase in its foreign exchange reserves for the week ending November 15, 2024, signaling improving economic stability.
The SBP’s forex reserves rose to $11.288 billion, up from $11.259 billion the previous week. This increase reflects the central bank’s efforts to bolster the country’s foreign exchange position amid ongoing macroeconomic challenges.
Rising export receipts have also contributed significantly to the rupee’s stability against the dollar. Official foreign reserves increased by $84 million, reaching $11.257 billion, providing some relief for the country’s external financial obligations.
Market observers noted that the rupee’s stability has helped restore investor confidence, as seen in a modest recovery in the equity markets. However, they emphasize that maintaining this positive momentum will require addressing structural challenges within Pakistan’s export sector and reducing reliance on short-term financial inflows.
The rupee’s upward movement is also supported by the growing trend of remittances, with increased inflows from overseas Pakistanis boosting the country’s foreign exchange reserves. Despite these positive factors, analysts caution that a sustainable recovery will depend on structural reforms, particularly in export-oriented industries, to further diversify the economy and reduce vulnerability to external shocks.
Despite these gains, challenges remain. Global economic uncertainty, volatile commodity prices, and geopolitical tensions pose risks to further progress. Analysts stress the importance of policies that enhance export competitiveness, attract foreign investment, and diversify remittance sources to ensure long-term economic stability.
