Rupee Regains 9 Paisas to Dollar Amid Foreign Inflows

Rupee Regains 9 Paisas to Dollar Amid Foreign Inflows

June 21, 2024 – The Pakistani Rupee regained 9 paisas against the US dollar on Friday, bolstered by foreign inflows from export receipts and remittances. Closing at PKR 278.51 per dollar, the rupee showed a slight improvement from the previous day’s PKR 278.60 in the interbank foreign exchange market.

Currency experts attributed this appreciation to the influx of dollars through export receipts and remittances. They noted that while the rupee faced pressure due to high dollar demand for import and corporate payments, this was countered by the steady inflow of dollars and an increase in foreign exchange reserves.

The State Bank of Pakistan (SBP) reported a notable increase in the country’s foreign exchange reserves, which rose by $31 million in the past week. As of June 14, 2024, the total reserves stand at $14.415 billion, up from $14.384 billion on June 7, 2024. The SBP’s own reserves experienced a significant boost, increasing by $32 million to $9.135 billion from the previous $9.103 billion. This rise in reserves is a positive sign of economic stability and enhances the country’s ability to meet foreign obligations and stabilize the local currency.

Economic analysts highlighted that the recent 2024-25 budget measures also played a role in supporting the rupee. The budget has made importers more cautious in placing new import orders, thus reducing the immediate demand for dollars. This cautious approach has helped ease some of the pressure on the rupee.

“The increase in foreign exchange reserves and the inflow of export receipts and remittances have been crucial in supporting the rupee,” said a senior currency analyst. “Despite the ongoing demand for dollars for import and corporate payments, these positive inflows have provided a necessary cushion for the local currency.”

The appreciation of the rupee, although modest, reflects underlying positive economic activities and fiscal measures aimed at bolstering economic stability. Market observers will continue to monitor these trends closely as Pakistan navigates its economic challenges and opportunities in the global market.