Pakistani Rupee shows some recovery against US dollar in interbank market

Pakistani Rupee shows some recovery against US dollar in interbank market

Ahead of the IMF talks starting from today, the Pakistani rupee showed some resilience and brought down the US dollar by Rs4.63 in the interbank trading on Tuesday.

According to money dealers, the Pakistani rupee made a recovery after suffering an initial loss when the US dollar hit Rs270 barrier during early trading today. But soon the local unit made a comeback and the American currency was sunk by Rs4.63 making US dollar to be traded at Rs265.

During last 7 working days, the exchange rate of US dollar pinnacled to Rs269 from Rs229.67 after gaining Rs38.33 in its value.

During Monday’s trade, the rupee was hammered by the US dollar and settled at all-time low at Rs269.63, depreciating by a staggering Rs7.03 and losing its value by 2.61% in a single day.

Since last week, the value of local unit has been declined as a result of the decision pertaining to the removal of the dollar cap in the open market on Wednesday.

The Mattis Gobal quoted Fahad Rauf, the Head of Research at Ismail Iqbal Securities as saying: “The rupee continues to remain under pressure, as there is a limited supply… Once the flows come in, the new market rate would be set. ”

There is a little ray of hope for the forex-starved Pakistan which is facing sovereign default, as the IMF is starting a technical discussion with authorities on Tuesday (today), which would continue till Friday (Feb 3) to finalise a memorandum of economic and financial policies (MEFP) for the revival of its stalled tranche.