Dollar slips below Rs170 as rupee strengthens

dollar vs rupee - Dollar slips below Rs170 as rupee strengthens

KARACHI: Pakistani rupee continued recovering against the US dollar in the inter-bank market for the sixth straight session on Wednesday with the local unit gaining 57 paisas (+0.34 percent) on the back of the Saudi package as well as prospects of resumption of $6 billion Extended Fund Facility by the International Monetary Fund (IMF).

According to the State Bank of Pakistan, the US dollar opened at Rs170.54 and closed at Rs169.97. Within the open market, the rupee was traded at 171/ 172 per dollar.

The Pakistani rupee made an all-time low of Rs175.27 on October 26 last and since then the local currency has recovered Rs5.30 against the greenback during the last six sessions after the announcement of the Saudi package for Pakistan. Overall, the rupee appreciated by Rs1.68 during the last three days of this week. The rupee depreciation during the fiscal year 2021-22 has been Rs12.55, while the local unit has shed Rs9.80 against the US dollar in the current year 2021.

The currency dealers said that a jump in exports also supported the rupee to appreciate against the dollar, besides Saudi assistance. The exports of the country surged 25 percent to $9.44 billion during July–October 2021, compared with $7.57 billion in the corresponding period of the last year, according to the data released by the Pakistan Bureau of Statistics.

Saudi Arabia on October 26, 2021 announced additional support of $3 billion to Pakistan for building its foreign exchange reserves. The financial support is in addition to a $1.2 billion deferred oil facility to Pakistan to help its balance of payment issues.

Adviser to the PM on Finance and Revenue, Shaukat Tarin said on Monday last that Pakistan and the IMF will sign an agreement on the release of a $1 billion tranche of a bailout package this week. “All issues have been settled with the International Monetary Fund and an agreement will be signed this week,” Tarin said while talking to the media persons.

Related posts