KARACHI: Pakistani currency has started to bounce back against US dollar ina first sign of economic revival.
Pakistani Rupee hit a seven-week high at Rs138.78 against the US dollar ininter-bank market on Friday, according to the State Bank of Pakistan, afterthe country successfully mitigated the risk of default following receipt of$2 billion from friendly countries.
Simultaneously, the rupee revived to a four-week high at retail market to139 against the greenback on Saturday, according to a forex website.
“The $2 billion inflows from the UAE and Saudi Arabia (on Thursday andFriday) has partially eased the panic at currency markets,” said a bankeron condition of anonymity.
The receipts have surely improved the country’s foreign currency reservesfrom less than two-month import cover prior to the inflows. “Theimprovement is reflecting in currency markets,” he said.
Read Top Stories
With the latest inflows, the two Gulf countries deposited a total of $4billion in the past three months under financial assistance packagestotalling $6 billion to help stabilise Pakistan’s foreign currency reserveswhich, as of last week, dropped to a 57-month low of $6.63 billion.
Besides, speculation about receiving a similar assistance package fromChina also echoed in the market.
The inflows have eliminated chances of further devaluation in the rupee inthe short-run, said the official.
