Pakistani Rupee recovers back against US dollar: Report

Pakistani Rupee recovers back against US dollar: Report

KARACHI: Foreign investment in treasury bills (T-bills) reached a record high of $712.8 million in the first four months of this fiscal year.

The return of stability to the rupee-dollar parity coupled with high rates of return on debt instruments encouraged foreigners to resume investment in Pakistan.

Foreign investment in the treasury bills reached a new high of $267 million during November 1-12. The US, UK and the UAE have increased their portfolios of government T-bills and Pakistan Investment Bonds. Investment from the UK clocked in at $169.5 million, followed by the US ($92.6 million) and the UAE ($5 million). Since the start of the current fiscal year, foreign investment in the government securities stood at $711 million.

In a recent press conference, State Bank Governor Dr Reza Baqir rejected the perception that foreign investment in T-bills would fall once the interest rates go down. He said some investors might leave but they will return when the economy achieves stability.

The central bank let the rupee depreciate 52% from December 2017 to Rs160.05 against the US dollar on June 30, 2019.

The rupee has largely remained stable since then. Rather, it recovered 2.88% or Rs4.65 to Rs155.40 on Wednesday compared to Rs160.05 on June 30 and the stability has pushed the investors to pour investment into Pakistan.