Karachi, July 17, 2023 – The Pakistani Rupee (PKR) experienced a decline of PKR 1.67 against the US dollar on Monday due to the increasing demand for import payments. The interbank foreign exchange market witnessed the exchange rate falling from PKR 277.59 to PKR 279.26 at the close of the day.
READ MORE: Pakistani Rupee Weakened Against US Dollar to PKR 277.59 at Interbank Closing
Currency analysts attribute the drop to the high demand for dollars at the beginning of the week, driven by import and corporate payments. The recent decision by the State Bank of Pakistan (SBP) to lift the ban on processing import payments has added further pressure on the local currency.
Despite these short-term challenges, experts maintain an optimistic outlook for the rupee’s future performance. The significant influx of foreign funds to support Pakistan’s external sector serves as a positive factor in this regard.
READ MORE: Pakistani Rupee Strengthens to PKR 276.46 Against Dollar After IMF Bailout Boost
Additionally, recent data released by the SBP highlights a notable increase in Pakistan’s foreign exchange reserves. Within a week, reserves grew by $405 million, reaching a total of $9.746 billion by the week ending June 30, 2023, compared to $9.341 billion recorded by the week ending June 23, 2023. This surge in reserves strengthens the positive sentiment surrounding the rupee’s performance.
READ MORE: PKR Gains Momentum in Anticipation of Inflows
Currency experts anticipate further foreign inflows in the upcoming week, pending the approval of a bailout package by the executive board of the International Monetary Fund (IMF). These potential developments contribute to an overall positive outlook for Pakistan’s economic landscape, as increased foreign exchange reserves and a strengthened rupee augur well for financial stability and economic growth.
READ MORE: Pakistani Rupee Makes Recovery Against US Dollar, Ends at PKR 278.57
It is important 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 closely monitor market conditions and seek professional advice when making financial decisions.