On Friday, The State Bank of Pakistan data suggests that the Pakistani currency reached its highest level in over three months, trading at Rs279.59 against the US dollar in the inter-bank market.
The Pakistani currency experienced a cumulative gain of 9.84% or Rs27.51 against the US dollar over the past four and a half months, since reaching its all-time low of Rs307.1 per US dollar in September 2023 in interbank.
This increase was fueled by a rise in foreign currency inflows compared to demand, which provided support to the local currency.
The rupee gained strength following reports indicating a 3% increase in the central bank’s foreign exchange reserves, reaching a six-month high at $8.27 billion.
This boost in reserves suggested a growing supply of the US dollar.
Market analysts anticipate the rupee to remain stable around current levels until the general elections scheduled for February 8, 2024.Â
Additionally, market participants are eagerly awaiting the next monetary policy announcement by the SBP on Monday, which may provide clarity on the short-term direction of the rupee.
