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Rupee falls slightly from 4-month high | The Express Tribune

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KARACHI:

Pakistan’s stabilizing currency on Friday depreciated slightly to Rs 279.19 against the US dollar in the interbank market, down from its over four-month high following a decline in foreign exchange reserves of the central bank below 8 billion dollars.

According to State Bank of Pakistan (SBP) data, the rupee fell by 0.02 per cent, or Rs0.08, against the greenback amid slowdown in foreign exchange inflows relative to its demand.

The currency had reached its highest level in four months on Thursday at Rs279.11/$. The consolidating rupee witnessed a nominal depreciation after cumulatively recovering 10%, or Rs28, over five and a half months since it hit record closing low of Rs307.10/$ in the first week of September 2023.

Read Rupee stabilizes near 279

The latest drop follows foreign exchange reserves falling by $63 million to $7.95 billion in the week ended February 23, 2024, according to the central bank’s weekly update.

Technically speaking, the rupee has become overvalued on the global matrix called the real effective exchange rate (REER), which is the value of the Pakistani currency against a basket of currencies of global trading partners. The REER appreciated to 101.70 in January 2024 from 98.3 in December 2023, indicating that moderate depreciation was possible.

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