Rupee resumes upward trend against US dollar

• Rupee gains 0.12% to close at Rs176.77 against the US dollar.
• Local currency has depreciated by 12.2% since July 1, 2021.
• Forex reserves fall by 4.96% on a weekly basis.

KARACHI: The Pakistani rupee ended the week by resuming its upward movement against the US dollar after recording losses since last four session.

The local currency recorded an increase of 0.12% to close at Rs176.77 in the inter-bank market on Friday

After posting a fresh gain of 0.12%, the Pakistani rupee has depreciated by 12.20% (or Rs19.23) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

The rupee has maintained the downtrend for the past nine months. It has lost 16.08% (or Rs24.5) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

Investors remained on the sidelines after the news that the Executive Board of the IMF has once again delayed Pakistan's sixth review.

It is pertinent to mention here that the IMF website, which lists its Executive Board Calendar, showed Pakistan's discussion would be taken up on February 2.

Meanwhile, the foreign exchange reserves held by the central bank fell 4.96% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On January 21, the foreign currency reserves held by the SBP were recorded at $16,190.1 million, down $846 million compared with $17,035.7 million on January 14.

According to the central bank, the decrease came due to external debt and other payments.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $22,482.1 million. Net reserves held by banks amounted to $6,292 million.