Rupees Recovers 94 paisas after reversing its declining trend
On Thursday, the rupee regained approximately Re1 versus the US dollar in the interbank market.
The local currency finished at Rs168.18 versus the US dollar, up 94 paisas or 0.56 percent, according to the State Bank of Pakistan (SBP). On Wednesday, the rupee reached an all-time high of Rs169.12 versus the US dollar.
The local currency has lost about Rs1.87 versus the greenback in the previous five days, according to Arif Habib Limited.
Since reaching a 22-month high of Rs152.27 on May 14, 2021, the currency has continued to fall, shedding a total of 9.4 percent (or Rs15.91) in the last four months.
This week, the local currency hit new lows against the dollar, with many pundits predicting that the dollar will hit Rs170 this week.
The rupee, on the other hand, did not give the US dollar a free ride today, recovering some of its early losses against the greenback.
Following alleged dollar selling by the central bank, the rupee was able to regain some of its lost territory, which not only helped supply but also boosted confidence.
The SBP’s action averted a worsening of the situation. In intraday trade on the interbank market, the rupee climbed to Rs167.70.
This week, the local currency hit new lows against the dollar, with many pundits predicting that the dollar will hit Rs170 this week.
It’s worth noting that, beginning of June 2019, the central bank has been using a market-based flexible exchange rate system, in which the exchange rate is decided by demand and supply.
Previously, the SBP said several times in its comments that it may interfere in the market solely to avert market instability.
