Rupee once again crosses Rs175 barrier against US dollar

Rupee resumes upward trend against US dollar

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KARACHI: The Pakistani rupee ended the week with a resumption of gains against the dollar after posting losses since the last four sessions.

The local currency rose 0.12% to close at Rs 176.77 in the interbank market on Friday

Data released by the central bank showed that the Pakistani rupee has depreciated by 12.20% (or 19.23 rupees) since the start of the fiscal year on July 1, 2021, after recording a fresh gain of 0.12%.

The rupee has maintained the downtrend for the past nine months. It has lost 16.08% (or Rs24.5) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

Investors remained on the sidelines after the news that the Executive Board of the IMF has once again delayed Pakistan’s sixth review.

It is worth mentioning here that the IMF website, which lists its Executive Board calendar, shows that discussions in Pakistan will take place on February 2.

Meanwhile, foreign exchange reserves held by the central bank fell by 4.96% on the week, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On January 21, the foreign currency reserves held by the SBP were recorded at $16,190.1 million, down $846 million compared with $17,035.7 million on January 14.

According to the central bank, the decrease came due to external debt and other payments.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $22,482.1 million. Net reserves held by banks amounted to $6,292 million.

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