KARACHI: Pakistani rupee snapped a three-day losing streak against the US dollar on Thursday and bounced back by appreciating Rs2.18 (+0.76 percent) in the interbank market.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 289.38 against the dollar in the interbank market and closed at 287.20. During the previous three sessions, the rupee weakened against the US dollar by Rs2.91.
Similarly, the local unit appreciated against the greenback in the open market by Rs2 (+0.68 percent). The rupee was quoted in the range of 288-291 against the dollar in the open market as compared to 290-293 a session earlier. In the black market/Hundi, the dollar fell to Rs310 from Rs313.
During the current fiscal year 2023-24, Pakistani rupee has shed Rs1.21 against the US dollar in the interbank market, while it plummeted by Rs59.77 against the greenback in the current year.
In a key development, the Senate on Wednesday passed a law allowing the establishment of state-owned Pakistan Sovereign Wealth Fund, worth $8 billion, to stabilise the country’s economy through diversification and to generate wealth for future generations. The newly established Sovereign Wealth Fund will have the authority to engage in various types of transactions, including divestment through sales and making strategic investments. Moreover, the fund will exploit the three drivers of growth; mining, agriculture, and information technology up to their full potential.
Globally, the US dollar was perched near a four-week high on Thursday, shrugging off a US credit rating downgrade that cast doubt on the country’s fiscal outlook, and instead got a leg up from strong private payrolls data. Data out on Wednesday showing US private payrolls rose more than expected in July boosted the greenback, as the figures pointed to continued labour market resilience which is likely to keep US rates higher for longer. – TLTP