Rupee comes down from 4-1/2-month high

KARACHI: The stabilising Pakistani currency ticked down Rs0.04 and closed slightly below Friday’s four-and-a-half-month high at Rs279.08 against the US dollar in the inter-bank market on Monday. The currency recorded the nominal drop after Pakistan’s central bank reported that its foreign exchange reserves further decreased $54 million to $7.89 billion in the week ended March 1, 2024. It indicated that the supply of foreign currency continued to remain thin in the banking system. According to SBP data, the domestic currency hit four-and-a-half-month high close at Rs279.04 against the greenback of Friday. The currency has cumulatively surged 10.05%, or Rs28.06, over the past six months until March 8. In the open market, however, the rupee maintained its uptrend for the fourth consecutive working day with gains of Rs0.07 at Rs281.61/$, according to the Exchange Companies Association of Pakistan. Accordingly, the disparity between the two markets narrowed to Rs2.53 (or 0.90%), down from over Rs3, or 1%, early last week, well below the maximum limit of 1.25% (around Rs4) recommended by the IMF.