It seemed the Pakistani currency was taking hold of its thrashing of the US dollar as the rupee opened the business on Thursday on solid grounds sending the greenback crashing to below Rs200 mark, reported 24NewsHD TV channel.

After getting a severe thrashing for the last three days at the hands of US dollar, the rupee has shown some guts on Wednesday and now on Thursday it scored a healthy gain of Rs2.02 pushing the dollar down to Rs200 barrier. The greenback, however, quickly struck back at the Pakistani currency and recovered some of the lost ground and ended the day at Rs200.77 down by 75 paisas.

The forex dealers were cautious as the rupee also stared Wednesday robustly but later settled for a much lesser gain against the US dollar.

https://twitter.com/StateBank_Pak/status/1534845376053780481

Yesterday, the US dollar closed the day at Rs201.52 down by Rs1.31.

https://twitter.com/StateBank_Pak/status/1534517791537213441

The rupee’s recovery is attributed to the tightening monetary policy of the government which has put a ban on all kinds of imports except some essential items and raw material to bring balance of the payments down. 

The market sentiments are positive as Finance Minister Miftah Ismail during a press conference the other day expressed the government’s resolve to further tightening the belt while hinting at raising the POL price once again. 

Withdrawal of all kinds of subsidies on petroleum products and electricity tariff is the main demand of the International Monetary Fund which will revive its loan programme if Pakistan accepts its conditions.

Reporter Habib Khan