The Pakistani rupee ended the final trading session of the current fiscal year 2023-24 on a positive note as the currency saw a marginal appreciation of 0.01% against the US dollar in the inter-bank market on Friday.
At close, the local unit settled at 278.34, a gain of Re0.04 against the greenback.
On Thursday, the rupee had closed at 278.38 after a gain of Re0.02.
In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and larger International Monetary Fund (IMF) bailout programme.
The local currency, which stood at 285.99 on June 27, 2023, remained relatively stable for the most part of the current fiscal year, mostly on the back of administrative measures taken by the SBP announced in September to curb illegal trading and smuggling of currency.
“During FY24, PKR witnessed appreciation (after 3 years) against the US dollar by 2.8% YoY,” said Arif Habib Limited (AHL), a brokerage house, in a note.
AHL attributed the appreciation to improved economic indicators during the current fiscal.
“The appreciation is primarily due to a decrease in the current account deficit, improvement in foreign inflows, a reduction in the spread between open and inter-bank rates, and other administrative measures,” it said.
Internationally, the US dollar was headed for a second straight quarterly gain and jumped to a near four-decade high on the battered yen in Asia trade on Friday, ahead of a crucial US inflation reading.
Neither an overnight drop in US yields nor data showing solid consumer price gains in Tokyo could arrest the downward slide in Japan’s currency, which sank to its weakest since 1986 at 161.155 per dollar.
The US dollar index was 0.2% stronger at 106.07 on Friday for a 1.5% quarterly rise.
American Dollar Exchange Rate