According to data released by the State Bank of Pakistan (SBP), the SBP’s foreign exchange reserves fell by 0.2% week over week.
As of December 2, the central bank’s foreign reserves were $6,714.9 million, according to the SBP report, a decrease of $14.9 million.
SBP-held reserves are at their lowest level ever as of January 2019. But the central bank did not offer an explanation for the decline in reserves.
Liquid foreign exchange reserves for the country totaled $12,570.2 million, including net reserves held by banks other than the SBP. Net reserves held by banks in their whole totaled $5,870.2 million.
Alvin Tan, head of Asia FX strategy at RBC Capital Markets, noted that because of yesterday’s significant risk-off, the dollar normally benefits from its status as a safe-haven asset.
Despite yesterday’s price action, the market is currently inclined to sell dollars in the near term, but as the new year approaches, we believe that trend may change as a result of the slowing global economy.
The US dollar dropped to 137.01 yen on Friday, down 0.54%. However, it was up 0.43% against sterling, with the exchange rate of pounds being $1.213.
The dollar index, which compares the value of the dollar to six important rivals, increased by more than 0.9% on Thursday but was essentially steady at 104.53 on Friday.
Takahiro Sekido, chief Japan strategist at MUFG, stated, “I agree with the market consensus and don’t foresee any policy change at the BOJ’s December meeting, but I want to carefully monitor for any comments from Governor Kuroda about the next leadership.”
According to Sekido, the dollar may drop to 125 yen by 2023. “Market participants may view that as a signal for policy normalisation, and that may support a strong yen,” he added.
