Pakistani rupee hits back at the US dollar

Published: 10:51 AM, 26 Apr, 2023
Business
US dollar snaps losing streak against Pakistani rupee
Caption: Representational image.

The US dollar bulldozed the winning streak of the Pakistani rupee on Wednesday in the interbank market and went up by a healthy margin but later the local currency struck back and turned the tables on the greenback, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the greenback on the first day of trading after Eid holidays appreciated by 83 paisas against the local currency but later it ran out of steam. The Pakistani rupee hit back hard and recovered all the value it lost today and then went up by eight paisas against the dollar and ended the day at Rs283.39.

 

During the last trading day on Thursday, the Pakistani rupee had regained its upward momentum against the US dollar, appreciating by 0.15% during trading in the inter-bank market. The local currency had settled at 283.47, an increase of 42 paisas.

Before Eid holidays, the rupee remained largely stable against the US dollar as the market dealers awaited resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF), which has remained stalled since last year.

In a key development, Pakistan’s current account posted a massive surplus of $654 million in March against a (revised) deficit of $36 million in February 2023. “Cumulatively, the current account deficit reduced to $3.4 billion in July-March FY23 against a deficit of $13 billion in July-March FY22,” the SBP said in a statement.

This is the first surplus on a monthly basis since November 2020 when the Covid pandemic had brought the global economy to a standstill. However, experts believe that maintaining a current account surplus is “unsustainable” in the long run because if Pakistan opens its economy, imports will rise and the deficit will return.

Reporter Ashraf Khan

Categories : Business Tags :

News Desk