On Friday, the US dollar successfully turned the tide against the Pakistani rupee and record a slight gain in the interbank market.
The Pakistani rupee once again began the day on a favorable note against the US dollar, but it was unable to maintain this momentum.
By noon, the Pakistani rupee has lost 15 paisas against the US dollar after beginning the day’s trade having gained 60 paisas. US dollar is now traded at Rs218.50 as the banks are selling the greenback at Rs219.
However, in an open market, the dollar is being traded between Rs219 and Rs221.
Interbank closing #ExchangeRate for todayhttps://t.co/X4nH3Yanbp pic.twitter.com/eXpb0sM2d3
— SBP (@StateBank_Pak) September 1, 2022
Following a brutal day of interbank trading on Thursday, the US dollar finally retaliated against the Pakistani rupee. The dollar regained all of its losses and saw a value increase of 15 paisas.
The US dollar increased 15 paisas as trading came to an end at Rs218.60.
The SBP received the IMF’s deposit on Wednesday, after the much-needed nod of the Fund to immediate disbursement on successful completion of the combined seventh and eighth reviews of a loan facility.
The completion of the review will help catalyze crucial external financing from multilateral and bilateral development partners. The Board has also approved the extension of the program through end-June 2023, and augmentation of access by SDR 720 million (US$ 934) increasing the total program size to SDR 4,988 million equivalent to 245.6 percent of quota.
Though the rupee is making gains the large-scale destruction by recent floods and rains which have caused massive loss of crops, livestock, bridges, and roads, and the displacement of 30 million people, is hampering the rupee’s recovery as the country’s exports are bound to suffer and the country has to bear enormous rehabilitation expenses.
Besides this, the State Bank does not want a significant dollar depreciation believing that the exporters would get benefits from it and off-load their dollar holdings.
