Karachi, August 4, 2023 – The Pakistani Rupee (PKR) continued its upward trajectory against the US dollar, reaching PKR 286.97 at the close of the trading session in the interbank foreign exchange market on Friday.
The rupee witnessed a notable appreciation of 23 paisas from the previous day’s closing rate of PKR 287.20 against the dollar. This marks the fourth consecutive day of gains, following a recent rebound after three consecutive days of decline.
READ MORE: Rupee Makes Strong Comeback Against Dollar After Three-Day Slump
Currency analysts attribute the rupee’s strengthening to positive sentiments spurred by the latest economic developments in the country. Moreover, the historic gains in the Pakistani equity markets have also contributed to boosting investor confidence.
However, it is essential to note that Pakistan’s foreign exchange reserves have experienced a decline, reaching $13.464 billion by the week ending on July 27, 2023. This reflects a decrease of $70 million from the previous week’s level of $13.534 billion, recorded on July 21, 2023. The drop in reserves was mainly driven by a $32 million decline in foreign exchange reserves held by the State Bank of Pakistan (SBP), reaching $8.154 billion at the end of the week, compared to $8.186 billion a week earlier.
READ MORE: PKR Falls for Third Straight Day Against Dollar, Ends at PKR 289.38
To address these economic challenges and bolster foreign exchange reserves, Pakistan’s Finance Minister, Muhammad Ishaq Dar, has announced a plan to increase reserves to $15 billion within the next seven weeks. This measure aims to stabilize the currency and reinforce Pakistan’s economic position in the international market.
Government authorities are closely monitoring the situation and are prepared to implement further measures to mitigate the effects of the rupee’s depreciation. They acknowledge that global economic conditions and factors influencing foreign exchange markets will also play a crucial role in determining the future trajectory of the PKR against major currencies.
READ MORE: Rupee Continues to Dwindle Against US Dollar, Closes at PKR 287.54 in Interbank Battle
Market participants, investors, and traders are urged to exercise caution and stay informed about the latest updates in the foreign exchange market. Fluctuations in currency value can have a profound impact on trade, investments, and overall economic stability. Staying abreast of developments in the foreign exchange market will enable them to make well-informed decisions.
READ MORE: Pakistani Rupee Falters Against Dollar, Hits 19-Paisa Slide
As the situation remains dynamic, businesses and market participants in Pakistan are closely monitoring the foreign exchange market. The government’s efforts to bolster foreign exchange reserves and the influence of global economic conditions will be crucial in determining the future performance of the PKR against the US dollar and other major currencies.
