The Pakistani Rupee exhibited resilience in the interbank foreign exchange market on Monday, appreciating by another three paisas against the US Dollar.
The positive trend was attributed to substantial inflows of foreign financial assistance, primarily from Saudi Arabia and the United Arab Emirates (UAE).
At the close of the trading day, the rupee was quoted at Rs138.75 to the dollar, marking a slight improvement from the previous Friday’s close of Rs138.78 in the interbank foreign exchange market. The influx of financial aid totaling $2 billion from Saudi Arabia and the UAE played a pivotal role in bolstering Pakistan’s foreign exchange reserves.
The day commenced with the interbank foreign exchange market opening in the range of Rs138.80 and Rs138.85. Throughout the trading session, the market demonstrated a fluctuating pattern, reaching a day high of Rs138.85 and a low of Rs138.74. Ultimately, the market concluded with the rupee settling at Rs138.75 against the US Dollar.
The positive momentum extended beyond the interbank market, as the open market also witnessed a favorable adjustment in exchange rates. The buying and selling rates for the dollar recorded at Rs138.50 and Rs139.00, respectively. This reflected an improvement from the previous Saturday’s close of Rs138.60 for buying and Rs139.00 for selling.
The financial assistance from Saudi Arabia and the UAE has been pivotal in addressing Pakistan’s economic challenges, particularly in the context of bolstering foreign exchange reserves. This assistance is expected to provide much-needed stability and liquidity to the country’s economy, helping to mitigate external pressures.
The government and economic analysts are optimistic about the positive impact of these inflows on the overall economic outlook. The strengthened position of the Pakistani Rupee against the US Dollar is seen as a positive indicator, signaling increased confidence in the country’s economic policies and financial stability.
While the appreciation of the rupee is a positive development, economists emphasize the importance of continued efforts to address underlying economic challenges and promote sustainable growth. Structural reforms, prudent fiscal management, and attracting foreign direct investment are seen as crucial elements for ensuring long-term economic stability.
As Pakistan continues to navigate its economic landscape, the recent appreciation of the rupee is viewed as a step in the right direction. The government, in collaboration with international partners, is expected to continue implementing measures aimed at fostering economic resilience and sustained growth. The positive sentiment in the foreign exchange market is a testament to the ongoing efforts to strengthen Pakistan’s economic fundamentals.
