The rupee remained unchanged against the US dollar in the interbank trading and closed at Rs278.63 on Tuesday (March 19).
According to the Forex Association of Pakistan (FAP), the buying and selling rates of the dollar in the open market stood at Rs278.6 and Rs281.2, respectively.
Against other currencies, the price of the euro decreased by Rs1.26 to close at Rs302.35 against the last day’s closing of Rs303.51. The Japanese yen came down by 01 paisa and closed at Rs1.85, whereas a decrease of Rs1.22 was witnessed in the exchange rate of the British pound, which was traded at Rs353.78 compared to the last closing of Rs355.00. Meanwhile, the Emirates dirham and the Saudi riyal remained stagnant to close at Rs75.87 and Rs74.29, respectively.
The stability of the rupee against the US dollar is indeed noteworthy, especially in the context of Pakistan’s economic landscape. Factors such as robust remittance inflows, increased export earnings, and expectations of IMF support have collectively contributed to this resilience.
Remittance inflows play a crucial role in supporting the local currency by adding to foreign exchange reserves. Similarly, higher export earnings bolster the country’s economic standing by enhancing its ability to meet foreign currency obligations.
The anticipation of IMF support further reinforces investor confidence, as it signals external validation of Pakistan’s economic policies and reforms. The successful completion of the IMF review and the subsequent disbursement of funds are pivotal steps toward stabilizing and strengthening the economy.
Foreign inflows, including remittances, export earnings, and anticipated IMF support, have collectively contributed to the appreciation of the rupee against the dollar. This stability is essential for fostering economic growth and maintaining investor confidence in Pakistan’s financial markets.