Rupee Weakens by 9 Paisas Against Dollar in Interbank Market

Rupee Weakens by 9 Paisas Against Dollar in Interbank Market

( – The Pakistani Rupee faced a minor setback on Monday, weakening by 9 paisas against the US dollar at the closing of the interbank foreign exchange market.

The rupee concluded the day at PKR 278.30 to the dollar, slightly down from last Friday’s closing rate of PKR 278.21.

Currency analysts noted that the market commenced the week on a positive note, with the rupee showing initial gains. However, the increased demand for the dollar due to import and corporate payments, typical for the first day of the week, exerted pressure on the rupee, leading to its depreciation by the end of trading.

Despite this slight dip, analysts remain optimistic about the rupee’s performance in the near future. They predict that the rupee will likely maintain stability until the end of the current fiscal year on June 30, 2024. This confidence is bolstered by recent pledges of foreign investments and an increase in the foreign exchange reserves held by the State Bank of Pakistan (SBP).

The SBP’s efforts to enhance foreign exchange reserves have been pivotal in providing a cushion for the rupee. The central bank’s strategies, including securing foreign investments and maintaining a steady influx of remittances, are expected to support the local currency’s stability.

Market participants are closely monitoring the global economic environment and domestic economic policies, which will play significant roles in determining the rupee’s trajectory. The interplay between dollar demand for imports and the inflow of foreign investments will be crucial in maintaining the delicate balance of the rupee’s value.

In summary, while the rupee experienced a minor weakening against the dollar on Monday, the overall outlook remains cautiously optimistic. Analysts and market observers will continue to watch economic indicators and policy developments, both domestically and internationally, that could influence the rupee’s stability in the coming months.