KARACHI: The rupee strengthened marginally versus the US dollar in the interbank market on Tuesday as a result of the Saudi package announcement.
The rupee gained 48 paisas versus the US dollar, finishing at Rs175.72.
On the basis of large import payments and the country’s diminishing foreign currency reserves, the local currency had dropped to an all-time low of Rs176.20 versus the US dollar the day before.
The announcement that the State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD) had signed a deposit agreement for the much-anticipated $3 billion funds alleviated the currency’s strain.
For the last six months, the rupee has been on a downward trend. It has dropped 15.4 percent (or Rs23.45) after reaching a 22-month high of Rs152.27 on May 14.
The rupee has depreciated by 11.53 percent (or Rs18.18) from the start of the current fiscal year on July 1, 2021, according to statistics issued by the central bank.
The current account deficit for November is likely to be over $1.5 billion, with imports “staying at record high levels.”
The currency is projected to trade in a band of Rs175-176 versus the greenback over the week.