The Pakistani rupee remained stable against the US dollar in the interbank trading on Tuesday, reported 24NewsHD TV channel.

According to foreign exchange dealers, the local unit was depreciated by five paisas during morning trade activity as the US dollar was traded at Rs224 in the interbank but at the closure of business it regained the five paisas at Rs223.95. 

https://twitter.com/StateBank_Pak/status/1597540283369259010

On Monday, the greenback was closed at Rs223.95. 

https://twitter.com/StateBank_Pak/status/1597189794735747074

The steadiness in local unit could be attributed to the hike in the policy rate to 16% by the State Bank of Pakistan. Besides this, the country is also expecting inflows from the Asian Infrastructure Investment Bank. 

The other measures taken by government like restrictions on import payments, opening of Letters of Credits and a limit on carrying foreign currency by the travelers are also paying off. 

The local currency has been trading in a range between Rs218 and Rs224 against the US dollar since many weeks. However, the volatility earlier seen in the interbank rates has shifted to the open and black markets, where spreads have reached Rs8-10 on every dollar.

 

Reporter Ashraf Khan