Pakistani rupee deals another heavy blow to US dollar, gets Rs1.65 in value
Rupee s value snowballed after Dar s statement to bring the dollar below Rs200
October 4, 2022 11:39 AM
The rupee is quickly sprinting past the US dollar since its late September recovery drive with the change of command at the finance ministry. The PKR on Tuesday gained Rs1.65 in its value in the interbank trading against the US dollar, reported 24NewsHD TV channel.
The forex dealers informed that the recovery of rupee was robust during the morning trading activity as the USD was depreciated by another Rs2.29 and was traded at Rs225. But later on, the US dollar managed to recover its some value and at the close of trading, the greenback was at Rs225.64, down by Rs1.64.
Yesterday the US dollar was closed at Rs227.29.
The dollar rate came down heavily a day after Finance Minister Ishaq Dar declared that the surge in the American currency’s value was unrealistic. It should come down to below Rs200, he added.
In an interview with a private TV channel, Finance Minister Ishaq Dar stated that rupee was under value as its value should be below Rs200 against the USD.
He said the dollar at the moment is pitching very strong internationally but the government will bring it down through its policies.
The PKR recovery is steady since the last week of September. The resuscitation of the local unit could also be attributed to the revised policies of the State Bank of Pakistan for foreign exchange companies.
The Mettis Global quoting an official of the Intermarket Securities has said that a decrease in international oil prices coupled with lowering foreign exchange liquidity demand are the main reasons why the rupee is appreciating.
He said that "the rupee can gain more strength against the greenback and will likely appreciate to Rs215-220 in coming time.”
However, the State Bank on Friday announced: “In terms of revised regulations, it has been made mandatory for exchange companies, franchises of exchange companies and exchange companies of ‘B’ category to settle rupee consideration of all foreign currency transactions conducted among themselves through their bank accounts”.
Despite the PKR recent surge, the economic experts are puzzled that since the economic fundamentals have not been changed, this exchange rate could be artificial and the rupee recovery could prove short-lived as we our forex reserves are not increasing and our current account deficit is not improving.
Reporter Ashraf Khan