Rupee Closes Higher Against US Dollar Than Last Year’s Rate for the First Time After 8 Years

The Pakistani rupee (PKR) closed in red against the US Dollar (USD) third day in a row today after opening trade at 279 in the interbank market. However, it has appreciated against the dollar compared to last year’s closing rate. This is the first time after eight years that the rupee has ended a calendar year in a much better position compared to the closing rate witnessed in the previous year, according to Arif Habib Limited. On a day-on-day (DoD) basis, the interbank rate stayed at 278-279/$ most of the day before closing at the 278 level. Open market rates across multiple currency counters remained at the 278-281 level today. It was volatile all day and closed in red against the greenback. Meanwhile, it posted gains against some of the other major currencies during today’s session. The PKR depreciated by 0.02 percent DoD after losing seven paisas and closed at 278.55 against the US Dollar today. On a fiscal year-to-date basis, the rupee has so far depreciated by 0.1 percent. Compared to 2023, this year’s PKR appreciation of 1.2 percent stems from a strong external position, marked by a current account surplus of $646 million in 11MCY24, compared to a deficit of $1.1 billion in the same period last year. AHL added that higher remittances and a rise in SBP’s reserves to $11.9 billion from $8.2 billion in December 2023 have also been supported. Additionally, the narrowed gap between interbank and open market rates also contributed to the currency’s stability. The PKR was red against some of the other major currencies in the interbank market today. It gained two paisas against the Saudi Riyal (SAR) but lost two paisas against the UAE Dirham (AED). Meanwhile, it lost 44 paisas against the Canadian Dollar (CAD). It gained 13 paisas against the Euro (EUR) and 25 paisas against the British Pound (GBP). The rupee gained 26 paisas against the Australian Dollar (AUD) in today’s interbank currency market.