Pakistani rupee stays strong against US dollar despite drop in forex reserves,
KARACHI:– The Pakistan Stock Exchange (PSX) kept witnessing bullish trend on Friday. After gaining 1,177 more points the KSE 100-index crossed 65,000 psychological barrier.
The index was trading at 65,905 with addition of 1,177 points.
The PSX had closed a day earlier at 64,718.08 points. The bullish trend at stock market shows restoration of investors’ confidence in policies of the government.
The country’s economy is constantly showing signs of improvement ahead of the release of IMF’s second loan tranche.
Reports about Chinese investment worth $1.5 billion in Pakistan Refinery Limited (PRL) have also encouraged market players, who resorted to heavy buying.
Besides that, investors are inspired by the Asian Development Bank’s (ADB) project financing of around $650 million for Pakistan.
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Separately, the American dollar shed more value against Pakistani rupee in the interbank on Friday. On last trading day, US dollar witnessed a decrease in its value by 37 paisas in the interbank. The dollar was trading against Pakistani rupee at 283.75 in the interbank.
A day earlier the US dollar was closed against rupee at 284.12.
The KSE-100 Index was 0.97 per cent, or 621. points, up during early trading on Thursday as investors were not in a mood to stop buying amid attractive returns being offered by energy and related companies. By 10:59am, the benchmark index had reached 64,538.73 against the previous closing of 63,917.72, which translates into 58.12pc gain during the current calendar year.
The latest gains come just a day after the stock market set new milestones as the KSE-100 Index was up 0.71 per cent, or 447.13 points – a session that the index breaching two ceilings, first smashing the 63,000 points barrier and later briefly crossing the 64,000 mark.
Experts believe that the stock market will not only cross the 65,000 points mark but also move even higher because investors want to take advantage of this momentum and aren’t expected to go for profit-taking.
It is not just the foreign investment pledges and the improvement in macroeconomic indicators which have been propelling the market towards new highs continuously.
While,
Pakistani rupee managed to thrash the US dollar in interbank market on Friday despite a heavy drop in country’s foreign exchange reserves, media reported.
According to the information obtained from money dealers, the local currency appreciated by 37 paisas against the greenback and was currently being traded at Rs283.75.
On Thursday, the Pakistani rupee had maintained its upward journey against the US dollar for the eighth consecutive session as it went up by two paisas, settling for the day at Rs284.12.
Interbank closing #ExchangeRate for today https://t.co/5eL3nQMg9J#SBPExchangeRate pic.twitter.com/3V09HKq7rm
— SBP (@StateBank_Pak) December 7, 2023
Meanwhile, the total liquid foreign exchange reserves of Pakistan had reached $12,107.1 million while the central bank held the reserves of $7,020.2 million.
The State Bank of Pakistan, in a statement issued on Thursday, informed that SBP’s reserves decreased by massive $237 million to $7,020.2 million due to debt repayments during the week ended on December 1, 2023.
Meanwhile, net foreign reserves held by commercial banks stood at $5,086.9 million, it added.
Total liquid foreign reserves held by the country, in the previous week ended on November 24, 2023, were $12.39 billion. Among them, foreign reserves held by the central bank were $7.257 billion while net foreign reserves held by commercial banks were $5.136 billion.
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