After getting a severe thrashing for the last three days at the hands of US dollar, the rupee has shown some guts on Wednesday by gaining Rs1.33 in its value and managed to bring down the greenback which was on no-holds-barred upward trajectory, reported 24NewsHD TV channel.
The forex traders informed that during trading activity on Wednesday, the rupee was faring better with a sound appreciation in its value thus bringing down the exchange rate of US dollar to Rs200.50, a plunge of Rs2.33 in its price, but later the greenback recovered some ground and closed the day at Rs201.50 down by Rs1.33.
Yesterday, the US dollar sprinted to the new record level after crushing the local currency and gained Rs2.77 to reach the record Rs202.83.
The recovery is attributed to the tightening monetary policy of the government which has put a ban on all kinds of imports except some essential items and raw material to bring balance of the payments down.
The market sentiments are positive as Finance Minister Miftah Ismail during a press conference yesterday expressed the government resolve to further tightening the belt while hinting at raising the POL price one again.
Withdrawal of all kinds of subsidies on petroleum products and electricity tariff is the main demand of the International Monetary Fund which will revive its loan programme if Pakistan accepts its conditions.
Reporter Habib Khan