Karachi: After a temporary one-day decline following an increase in the supply of the US dollar, the value of the Pakistani rupee rose by Rs 0.20 to close at a one-week high of Rs 277.64 versus the US dollar on Friday in the interbank market.
The State Bank of Pakistan (SBP) said the currency fell to Rs 277.84/$ on Thursday.
On the other hand, gold continued its downward trend for the second consecutive working day, falling Rs 800 to Rs 282,300 per tola (11.66 grams) in keeping with the worldwide trend.
The central bank said on Thursday that Pakistan’s foreign exchange reserves, held by SBP, rose $18 million week-on-week to a new two-and-a-half-year high of $11.04 billion, which triggered the rupee’s upward move.
Foreign exchange reserves increased by $2 billion over three months, marking the 13th consecutive week of such a jump. The development indicates that the banking sector has a sufficient supply of the US dollar.
Also read: IMF Projects Pakistan GDP Growth at 3.2% for 2025
Second, in an official application to the International Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb has requested $1 billion in climate financing to address pertinent challenges.
A higher inflow of funds from international creditors would follow from the expected funding award, which would boost foreign exchange reserves and strengthen the rupee’s value relative to the US dollar.
To recall, the rupee has spent the last seven months mostly staying steady in the Rs277–279/$ region. Analysts predicted the currency would hold steady at its current level through the end of December 2024.
Also read: Pakistan’s Total Debt Reaches 69% of Economy: Finance Minister
The All Pakistan Saraf Gems and Jewelers Association reports that within the last two working days, bullion has lost Rs 3,100/tola. The change occurred after the worldwide market dropped $31 to $2,726/ounce (31.10 grams) during the course of two days.
Market analysts have ruled out a significant decline in the precious metal due to the current downturn cycle. Early next year, they predict, there will be a significant correction. However, the commodity continues to have an expansionary long-term trend.
