Reasons behind Pakistani Rupee bouncing back against US dollar revealed

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Reasons behind Pakistani Rupee bouncing back against US dollar revealed

KARACHI: Reasons behind Pakistani Rupee bouncing back against US dollar revealed.

The rupee rebounded sharply on Friday after the central bank sold foreign currency in “quite a sizeable amount” to pull the exchange rate back from an all-time low, traders said.

Domestic currency closed at 160.05/dollar, 2.43 per cent stronger than Thursday’s close of 164.05 in the interbank market. In the open market, it gained Rs3.50 to close at 161 against the dollar from 164.50 in the previous session.

Traders said rupee strengthened on the back of an apparent intervention from the State Bank of Pakistan (SBP), following Prime Minister’s Imran Khan meeting with SBP Governor Dr Reza Baqir held on Wednesday.

“The SBP intervened in the foreign exchange market with a sizable amount through banks and authorised exchange dealers and carried out the necessary measures to control the exchange rate,” a senior banker said. He, however, declined to disclose the amount SBP had pumped into the interbank market.