Rupee gains amid uptick in SBP reserves

The rupee kept appreciating against the US dollar while the foreign exchange reserves held by the State Bank of Pakistan (SBP) witnessed a marginal rise of $31 million, reported the central bank on Thursday. The dollar lost another 93 paise to close at Rs278.58 in the interbank market which did not react to the disappointing figure of remittances. Several analysts were of the view that the 20pc drop in inflows from overseas Pakistanis during the first quarter of FY24 was enough to depress the local currency. However, the dealers said the dollars were easily available despite slower inflows from exporters who are believed to have sold out most of their holdings in fear of further depreciation. The greenback fell again by Re1 to Rs278 in the open market as sellers were in higher numbers than buyers. The open market is keeping the interbank market liquid by selling up to $40 million per day to the banks.