KARACHI: The rupee continued recovery drive for fifth in a row session against United States dollar on Thursday, because he got another Rs 2.65. in interbank market.
Currency market the dealers said dollar closed even lower at Rs 226.15 from Rs 228.80 the previous day as the local currency appreciated by record overnight profit of Rs 9.58 or 4.19%.
This significant increase in the rupee led to the exchange rate stability, as currency dealers believe fluctuations will not be as volatile as has been witnessed in July when the dollar rose over 13 percent in one month against local currency.
dollar lost in commemoration of some important events and announcements from government and State Bank of Pakistan. key development was satisfactory reply from the IMF, which states that Pakistan met background for OK of loans in meeting scheduled on 24 August.
Low import and sharp decline in trade deficit in July called on the local currency to return what was lost space.
However, currency dealers sure how for a long time current appreciation of the rupee has been steady as the inflow is still in pipeline in the form of promises. Finance minister It has again sought to calm market what dollar inflow is expected soon, while the State Bank says ruble is undervalued.
This was stated by currency dealers. market feelings have changed during last a week that supports the local currency but scares off speculators who took advantage of an undue advantage of vulnerable exchange rate.
Currency dealers argued that the inflow of export earnings continued for in last five days that was one of in main the reasons for in higher availability of dollars in in market. Open market reported that dollar lost another 3 rubles trade at a price of 226 rubles.
SBP inventories are falling
National Bank of Pakistan said its reserves fell $190m to $8.385bn in the week ended on July 29 due to external debt and other payments.
Foreign exchange reserves of commercial banks amounted to 5.823 billion dollars, while total reserves amounted to 14.208 billion dollars.
Published in Dawn, August 5, 2022