US dollar strikes back at Pakistani rupee after day-long hammering

By: News Desk
Published: 10:16 AM, 1 Sep, 2022
US dollar strikes back at Pakistani rupee after day-long hammering
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The US dollar struck back at the Pakistani rupee after day-long hammering in the interbank trading on Thursday, reported 24NewsHD TV channel.

As the business started, the emboldened Pakistani rupee once again thrashed the US dollar heavily and gained as much as Rs2.25; however the greenback later struck back and recovered all the losses and also gained 15 paisas in value.

As the trading concluded on Thursday, the US dollar was up by 15 paisas and closed at Rs218.60.

The Pakistani rupee on Wednesday kept up its upward momentum in a forceful way and gained Rs1.37 in the interbank trading. The Pakistan currency appreciated by Rs1.37 against the US dollar closing the day at Rs218.75 in the interbank.

In the open market, the US dollar went down by three rupees and concluded the day at Rs219.

The IMF on Monday revived Pakistan’s loan programme and its board approved the $1.17 billion loan disbursement thus paving the way for economic headway of otherwise forex reserves-starved country whose currency was fast losing its value. 

It was hoped that after the IMF loan approval, the Pakistani rupee would be appreciated considerably but it could not happen. Though the rupee is making gains but 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 rupee’s recovery as 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.