KARACHI: On Friday, the Pakistani rupee regained some of its lost value in the interbank market, rising by one rupee to Rs176.51 against the US dollar.
The Pakistani rupee regained 0.57 percent on the day, closing at 176.51, according to Arif Habib Limited. The brokerage business noted, “This is the third-highest recovery of the calendar year 2021.”
For the past seven months, the rupee has been on a downward trend. It has dropped 15.91 percent (or Rs24.24) since reaching a 22-month high of Rs152.27 in May.
The rupee has depreciated by 12.04 percent (or Rs18.96) from the beginning of the current fiscal year on July 1, 2021, according to data issued by the central bank.
Suspected intervention by the State Bank of Pakistan (SBP) helped the local unit rebound from its previous session’s record low, while the cabinet’s acceptance of the supplementary budget to receive funds from the International Monetary Fund bolstered mood as well.
The central bank, according to dealers, injected dollars into the market to avert additional declines. It’s worth noting that on December 29, 2021, the local currency hit an all-time low of Rs178.24 against the US dollar.
Analysts stated that the completion of preceding actions to complete the IMF’s sixth review provided some relief to investors, strengthening their outlook for the currency.
Currency dealers had previously stated that the State Bank of Pakistan’s (SBP) recent actions, such as tightening foreign currency buying regulations and frequent liquidity injections into the banking sector, had helped to stabilize the rupee.