Karachi, July 14, 2023 – The Pakistani Rupee (PKR) experienced a weakening trend against the US dollar on Friday, closing at PKR 277.59 in the interbank foreign exchange market. This decline of PKR 1.13 from the previous day’s closing value of PKR 276.46 is primarily attributed to increased import and corporate payment pressures.
READ MORE: Pakistani Rupee Strengthens to PKR 276.46 Against Dollar After IMF Bailout Boost
Currency experts point out that the demand for the dollar remained high as the weekend approached. Additionally, the recent decision by the State Bank of Pakistan (SBP) to lift the ban on processing import payments has further intensified the pressure on the local currency.
Despite these short-term challenges, experts hold an optimistic outlook for the rupee’s performance in the near future. The inflow of substantial foreign funds to support the country’s external sector serves as a positive factor in this regard.
READ MORE: PKR Gains Momentum in Anticipation of Inflows
Moreover, recent data released by the SBP reveals a notable increase in Pakistan’s foreign exchange reserves. Within a week, reserves rose by $405 million, reaching a total of $9.746 billion as of the week ending on June 30, 2023. This growth in reserves, from $9.341 billion recorded by the week ending on June 23, 2023, strengthens the positive sentiment surrounding the rupee’s performance.
Currency experts anticipate further foreign inflows in the coming week, pending the approval of a bailout package by the executive board of the International Monetary Fund (IMF).
READ MORE: Pakistani Rupee Makes Recovery Against US Dollar, Ends at PKR 278.57
These potential developments contribute to an overall positive outlook for Pakistan’s economic landscape. The increased foreign exchange reserves and a strengthened rupee bode well for the country’s financial stability and economic growth.
It is essential to note that currency markets are subject to fluctuations influenced by various economic factors. While recent gains in the value of the Pakistani Rupee indicate positive trends, future developments may impact the exchange rate. Investors and stakeholders are advised to monitor market conditions closely and seek professional advice when making financial decisions.
READ MORE: Pakistani Rupee Sharply Decreases Against US Dollar
