Pakistani Rupee gains further against US Dollar: Report

Pakistani Rupee gains further against US Dollar: Report
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ISLAMABAD - Pakistani Rupee has continued to perform well against the US Dollar and has made further gains in the open market.

The dollar lost further Rs 2 in the interbank market after touching a record-low of Rs 122.4 yesterday.

The greenback is trading at Rs 122.80 (buying) and between Rs 123 (selling).

Earlier, when the market opened, the Pakistan Stock Exchange (PSX) saw a negative trend. The benchmark Karachi Stock Exchange-100 index lost 400 points to reach 43,170 points.

Samiullah Tariq, Director Research at Arif Habib Limited, said, "The State Bank of Pakistan has taken steps to curb the illegal outflow of dollars."

He added, "The government, on the other hand, has also imposed restrictions on imports, which has improved the supply of the foreign currency in the market."

Tariq further stated that State Bank's reported purchase of dollars from the market at lower prices was driving down the rate of the greenback dollar in the interbank market.

However, IGI Head of Research Saad Khan is of the opinion that the decrease in dollar price is a temporary move driven from an anomaly created in the market.

Saad Khan said, "Open market rate [for the dollar] is slightly higher than that in the interbank market, which has created this temporary situation. Buying low and selling high in the open market has led to a liquidity problem."

The IGI analyst believes the change in the country's leadership along with a loan commitment of $6-7bn from Saudi Arabia and Asian Development Bank have a part to play in the decline in dollar price.

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