In positive economic development, Pakistani Rupee rises further against US dollar

In positive economic development, Pakistani Rupee rises further against US dollar

Karachi: The US dollar exchange rate against the Pakistani rupee further dropped on the last day of the business week—Friday.

According to the State Bank of Pakistan, in the interbank market, the value of the Pakistani rupee against the US dollar gaining 1 paisa increased by 0.01% to Rs152.82 against the last closing of Rs152.83— falling below a 22-month low level of Rs154.

Interbank closing #ExchangeRate link for today:link link — SBP (@StateBank_Pak) April 16, 2021 link

During the current financial year, the exchange rate fluctuated sharply and in August 2020 (FY 21), the rupee depreciated to its lowest level against the dollar, reaching Rs168.70 on August 20 last year.

The rupee then began to recover and has improved significantly against the US dollar over the past four months.

The government's efforts have begun to bear fruit, with the country's economy improving and the current account deficit narrowing, the rupee strengthening against the dollar has pushed the US dollar back to a 22-month low.

Forex dealers said the continuous depreciation of the US dollar despite the coronavirus epidemic is a signal of the country's improving economy and reducing the current account deficit.

At the same time, economists attribute the strengthening of the Pakistani rupee to an increase of $2.5 billion in the country's foreign exchange reserves.

It is to be noted that Pakistan received $2.5 billion in Eurobonds after which the country's foreign exchange reserves reached a three-year high point.

According to economists, with the increase in remittances and exports, the rupee has appreciated against the dollar in Roshan Digital Accounts.

Earlier, the SBP governor told the Prime Minister that remittances through Roshan Digital Account could cross the $80 million level.

It is important to mention that the Pakistani Rupee appreciates when a lesser amount of rupees is required to get one USD whereas PKR depreciates when more rupees are required to get one greenback.