Karachi
The Pakistani Rupee underwent a slight devaluation of 02 paisa against the US dollar in interbank trading on Monday (April 8), closing at Rs277.94 compared to the previous day’s closing of Rs277.92.
Currency experts attributed this decline to heightened demand for the dollar at the start of the trading week, particularly for import and corporate payments. However, they noted improved sentiments due to a surge in foreign exchange reserves held by the State Bank of Pakistan (SBP), which helped offset further losses in the rupee’s value.
Official data revealed a marginal increase in SBP’s foreign exchange reserves, reaching $8.04 billion for the week ending March 29, 2024, compared to $8.022 billion the previous week. Despite this uptick, the country’s total foreign exchange reserves experienced a decline of $49 million during the same period.
Analysts pointed to increased demand for the dollar as a primary factor behind the rupee’s slight depreciation. This demand was driven by heightened import requirements and corporate payments. Foreign companies operating in Pakistan were observed acquiring dollars to repatriate profits and dividends to their parent companies abroad, adding pressure on the local currency. Additionally, a surge in import payments further bolstered the demand for the dollar.
According to the Forex Association of Pakistan (FAP), the buying and selling rates of the dollar in the open market stood at Rs277.3 and Rs280.4, respectively.
In the movement of other currencies, the price of the euro decreased by 09 paisa to close at Rs301.07 against the last-day closing of Rs301.16, according to the State Bank of Pakistan (SBP). The Japanese yen remained unchanged, closing at Rs1.83, while an increase of 10 paisa was witnessed in the exchange rate of the British pound, trading at Rs350.97 compared to the last closing of Rs350.87. The Emirates dirham and the Saudi riyal remained stagnant, closing at Rs75.68 and Rs74.09, respectively.