In Monday’s trading session, the Pakistani rupee experienced a slight decline of 0.02 per cent against the US dollar in the inter-bank market, closing at Ra279.64, reflecting a decrease of Re0.05, according to the State Bank of Pakistan (SBP).

The previous week saw the rupee’s 11th consecutive week of appreciation, gaining Re0.31, or 0.11 per cent, to settle at Rs279.59 against the US dollar. 

This consistent uptrend was attributed to the approval of the second tranche of $705.6 million in the $3 billion Stand-by Arrangement (SBA) from the International Monetary Fund (IMF).

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The positive impact of the IMF inflow was evident in the foreign exchange reserves held by the SBP. 

Meanwhile, Caretaker Prime Minister Anwaar-ul-Haq Kakar instructed the Ministry of Energy to develop a comprehensive plan, in consultation with the Finance Ministry, to address and reduce the circular debt in the power and gas sectors.

In a significant move, the SBP announced plans to revamp the foreign exchange trading system by introducing a centralised foreign exchange (FX) trading platform named “FX Matching” for the interbank FX market.

On the global front, the US dollar maintained a stable position as investors assessed US economic data ahead of the Federal Reserve policy meeting scheduled for the week. 

Geopolitical tensions in the Middle East contributed to a cautious risk sentiment among investors.