In recent financial updates, the Pakistani Rupee exhibited a notable appreciation against the US Dollar, initiating trades at 282 in the interbank marketplace. Throughout the day, the currency demonstrated stability, maintaining a consistent rate close to 281 before eventually settling at a commendable 279. Various open market transactions reflected similar rates, oscillating between 279 to 282.
The Rupee observed a slight improvement, marking a 0.06 percent appreciation and a 16 paisa rise, concluding the day at 279.12 against the Dollar. When examining the currency’s performance since the start of the fiscal year, the Rupee has ascended by 2.45 percent.
However, a broader perspective reveals a decline of approximately Rs. 52.64 since January 2023 and a more significant drop of Rs. 96.3 since April 2022 against the Dollar. Nonetheless, the day ended on a positive note with a 16 paisa gain, sparked by optimistic developments regarding Pakistan’s financial dealings with China.
China’s recent move to extend the maturity of a $2 billion loan to Pakistan under the same conditions has injected a sense of relief and optimism. The decision to postpone the loan payment due on March 23, 2024, was informally communicated to Pakistan, with the Ministry of Finance eagerly awaiting an official confirmation to proceed with the necessary formalities.
Initially, there was a push from China for an increased interest rate on this loan, previously set at 7.1 percent, reflecting the 6M Secured Overnight Finance Rate (SOFR) plus an additional 1.715 percent.
In the broader spectrum of the interbank market, the Rupee outperformed several major currencies. It gained momentum with a four paisa increase against the UAE Dirham (AED) and the Saudi Riyal (SAR), a significant rise of Rs. 1.1 against the British Pound (GBP), and improvements of Rs. 1.06 against the Euro (EUR), along with a notable 97 paisa upswing against the Canadian Dollar (CAD).
Furthermore, the Australian Dollar (AUD) saw the Rupee climb by Rs. 1.31, marking a commendable day for Pakistan’s currency in the interbank currency market.
This positive trajectory for the Pakistani Rupee, particularly against the US Dollar, reflects the potential for economic resilience and recovery, buoyed by strategic financial negotiations and support from international partners like China.