Islamabad, Dec 31: The Pakistani rupee (PKR) closed lower for the third consecutive day against the US Dollar (USD) today, following an opening rate of 279 in the interbank market. Despite this recent dip, the PKR has appreciated against the dollar compared to last year’s closing rate, marking the first time in eight years that the rupee has ended a calendar year in a stronger position than the previous year, according to Arif Habib Limited.
On a day-on-day (DoD) basis, the rupee fluctuated between 278 and 279/$, closing at 278.55, reflecting a depreciation of 0.02 percent after losing seven paisas. Open market rates ranged between 278 and 281, showcasing some volatility throughout the day.
Despite the slight depreciation today, the PKR has appreciated by 1.2 percent compared to the same time last year. This improvement is attributed to a stronger external position, marked by a current account surplus of $646 million for the first 11 months of 2024, compared to a deficit of $1.1 billion during the same period last year. Additionally, higher remittances and a rise in the State Bank of Pakistan’s (SBP) reserves, which increased to $11.9 billion from $8.2 billion in December 2023, have provided support for the rupee.
The narrowing gap between the interbank and open market rates has also contributed to the currency’s stability. On a fiscal year-to-date basis, the PKR has depreciated by 0.1 percent.In today’s session, the rupee made gains against some major currencies. It appreciated by two paisas against the Saudi Riyal (SAR) and 26 paisas against the Australian Dollar (AUD). However, it lost two paisas against the UAE Dirham (AED) and 44 paisas against the Canadian Dollar (CAD). Notably, the rupee gained 13 paisas against the Euro (EUR) and 25 paisas against the British Pound (GBP).
