Pakistani rupee deals another heavy blow to US dollar
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The rupee kept up its steady rise against the US dollar as the local currency knocked down the greenback by Rs2.11 maintaining its all-week upward spree in the interbank trading, reported 24NewsHD TV channel.
The data provided by the forex dealers on Friday revealed that the rupee notched up by Rs2.15 in the morning trade and the US dollar slid to Rs224 by 10am in the interbank trading. But later, the rupee slumped a bit and the dollar rate was closed at Rs224.04.
According to the State Bank, the value of rupee was appreciated by 0.94 percent on Friday.
After two weeks of smashing by the US dollar, the rupee fell to its lowest level against the dollar on July 28, closing at 239.94. It then started to bounce back from Friday last and has been gaining since then.
The market is showing confidence in rupee, following the statement by the IMF that Pakistan has completed the last prior action required by the Fund to release the seventh and eighth review. Pakistan is expecting IMF’s $1 billion tranche soon.
Apart from this, Pakistan’s import bill dwindled in the month of July and it’s also on the decline during current month, providing a much-needed breathing space to rupee which was fast losing its ground against the US dollar.
Data released by the Pakistan Bureau of Statistics (PBS) on Tuesday showed the import bill dropped by 12.81pc to $4.86 billion in July from $5.57bn over the corresponding month of last year. On a month-on-month basis, the import bill dipped by 38.31pc.
The State Bank also played its role to rein in the galloping dollar as it issued a joint statement with the Ministry of Finance on Sunday stating that there was no danger of default and the country’s financing needs would be more than fully met in the current fiscal year.
The market has taken positive vibes and has started reposing confidence in rupee.
Reporter Ashraf Khan