Rupee continues ascending trajectory on fifth consecutive day, gains Rs3.9 at beginning of interbank trade
The rupee continues to make gain against the US dollar for the fifth consecutive session in the interbank on Thursday.
By 10:00 a.m., the local currency had won Rs3.9 for the dollar to reach Rs224.9, according to the Forex Association Pakistan (FAP).
Yesterday, the local currency hiked by 9.59 Rs9, or 4.2% in the interbank market—its greatest gain in a single day in years—to close at 228.80 at Rs228. Yesterday, the local currency hiked by 9.59 Rs9, or 4.2% in the interbank market—its greatest gain in a single day in years—to close at 228.80 at Rs228.
Fahad Rauf, in charge of research at Ismail Iqbal Securities, told Reuters that it was the biggest rupee gain in absolute value and as a percentage since 1999, based on data from the central bank.
After two weeks of fighting the dollar, the rupee dropped to its lowest level relative to the dollar on July 28, dropping at 239.94. He then started bouncing off Friday, increasing by Rs11.5 till Wednesday.
After two weeks of fighting the dollar, the rupee dropped to its lowest level relative to the dollar on July 28, dropping at 239.94. It then began to rebound on Friday, rising 11.5 Rs until Wednesday.
Secretary General of the Pakistan Exchange Companies Association (ECAP), Zafar Paracha, said that one of the reasons for the takeover of the rupee was the lower import bill for July which was expected to diminish further in August.
Data released on Tuesday by the Pakistan Bureau of Statistics (PBS) showed that the import bill fell from 12.81pc to 4.86 billion dollars in July from $5.57 billion over the same period last year. On a monthly basis, the importation bill fell by 38.31 pc.
Komal Mansoor, head of research at Tresmark, said exporters had been selling dollars on both the loan and term markets since the International Monetary Fund (IMF) declaration that Pakistan had completed the last necessary prior action for the review.
“The increase in supply, combined with limited outflows, further reinforced the rupee,” she commented.