US dollar shows some spine in face of Pakistani rupee onslaught, up by nine paisas
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The US dollar has shown some spine against the roaring Pakistani rupee on Wednesday as the local unit insisted on retaining its upward trajectory in the interbank trading, reported 24NewsHD TV channel.
According to the information provided by the forex dealers, the rupee in the morning trading activity fared well posting a gain of Rs1.04 against the US currency which traded at Rs216.75 by 10am in the interbank. But towards the noon, the US dollar edged up lowering its depreciation by 29 paisas, thus setting its exchange rate at Rs217.50 by 12pm in the interbank.
But at the close of the business, the greenback succeeded in turning the tide and was up by nine paisas against the Pakistani rupee and closed the day at Rs217.88.
The value of US dollar was declining continuously as it was closed at Rs217.79 yesterday depreciating its worth by 0.08% against the local unit.
The rupee is showing resilience since Finance Minister Ishaq Dar took the charge of Finance Ministry and warned speculators of strict action for artificially appreciating the rate of dollar. He said that the actual rate of US currency should have been below Rs200.
The State Bank of Pakistan has started a crackdown on traders and commercial banks who were involved in the speculative trading which has enabled the local unit to resuscitate.
Besides this, the SBP has been providing liquidity to the market which is likely to help banks in releasing payments to clear import backlog.
Other factors which contributed to the reviving of rupee include declining gap between interbank and KERB; influx of dollars by the exporters in the local market who were earlier holding it due to constant appreciation of the greenback; and possible arriving of additional international commitments that comprise $1.5 billion from the ADB by the end of October, UN commitment of near $1 billion, $0.5 billion from Asian Infrastructure Investment Bank and $1 billion from the World Bank during a period between Oct and Dec.
The market was also upbeat about the resilience of rupee as the State Bank on Monday left its policy rate unchanged at 15 per cent for the next two months.
Reporter Ashraf Khan