- Currency posts back-to-back gains after another 0.3% appreciation in inter-bank market
Pakistan's rupee showed strength against the US dollar for the second successive day, closing at 172.26 in the inter-bank market on Thursday.
The rupee appreciated to as much as 171.5 in intra-day trading, but ended with clipped gains. As per the State Bank of Pakistan (SBP), the rupee finished with a gain of 0.3% or 52 paisas day-on-day against the US dollar.
The respite comes after the currency posted its biggest day-on-day recovery, in absolute terms, since April 2020 on Wednesday, when it closed at 172.78.
Back-to-back gains, however, follow the rupee dropping to its lowest level on Tuesday when it closed over the 175 level for the first time in the inter-bank market.
The recovery comes after the announcement of Saudi Arabia's $4.2-billion support package in financial assistance to Pakistan.
The Saudi Fund for Development (SFD), on Tuesday night, announced the issuance of the Royal Directive to deposit an amount worth of $3 billion into the central bank of Pakistan, “to help the Pakistani government support its foreign currency reserves and support it in facing the impacts of the coronavirus pandemic,” read a statement by the Saudi Press Agency (SPA).
Additionally, the SFD said that the royal directive was also issued to finance the oil derivatives trade with a total amount of $1.2 billion throughout the year.
Pakistan's rupee has been under pressure since May this year as a widening current account deficit, high imports, and the volatile situation in Afghanistan take toll on the currency.
Inter-bank market rates for dollar on Thursday
BID Rs 172.26
OFFER Rs 172.36
In the open market, the PKR gained 1.20 rupees for both buying and selling against USD, closing at 172.10 and 173, respectively.
Against Euro, the PKR gained one rupee for buying and 1.10 rupees for selling, closing at 199.50 and 201.40, respectively.
Against UAE Dirham, the PKR gained 20 paisas for buying and 25 paisas for selling, closing at 48.60 and 49, respectively.
Against Saudi Riyal, the PKR gained 20 paisas for both buying and selling, closing at 45.60 and 46.05, respectively.
Open-market rates for dollar on Thursday
BID Rs 172.10
OFFER Rs 173