Karachi, November 26, 2024 – The Pakistani rupee appreciated by 5 paisas against the US dollar (USD) in early trading, reaching PKR 277.70 in the interbank foreign exchange market on Tuesday. This follows a closing rate of PKR 277.75 on November 25, 2024.
Currency analysts attributed the rupee’s gain to a decline in international oil prices, driven by easing tensions in the Middle East. Experts remain hopeful about the rupee’s stability, citing consistent inflows from exports and remittances as key factors supporting this positive outlook. Furthermore, the rising foreign exchange reserves of the State Bank of Pakistan (SBP) have strengthened confidence in the rupee’s performance.
The SBP reported a $29 million increase in foreign exchange reserves for the week ending November 15, 2024, pushing reserves up to $11.288 billion from $11.259 billion the previous week. This increase reflects ongoing efforts to bolster Pakistan’s external financial position amid broader macroeconomic challenges.
Export earnings have also played a significant role in stabilizing the rupee, contributing to an $84 million rise in official reserves, which now stand at $11.257 billion. This improvement provides some relief for the country’s external financial obligations.
Market analysts noted that the rupee’s strengthening has boosted investor confidence, helping the equity markets make modest recoveries. However, they stressed the need for addressing structural weaknesses within Pakistan’s export sector and reducing reliance on short-term financial inflows to ensure the rupee’s sustained stability.
Additionally, remittances from overseas Pakistanis continue to positively impact the country’s foreign exchange reserves, further supporting the rupee’s position. While these factors offer temporary relief, analysts warn that lasting economic progress hinges on implementing structural reforms, particularly in export-driven industries, to diversify the economy, enhance long-term growth prospects, and reduce vulnerability to external shocks. Strengthening the domestic industrial base and improving trade relations will be essential for maintaining the rupee’s stability in the future.
