After two days of losing value, the rupee recorded a marginal gain of 30 paisas against the US dollar in the inter-bank on Friday.
As per the State Bank of Pakistan (SBP), the rupee settled at 214.65 against the US dollar after a gain of Re0.30 or 0.14%.
On Thursday, the rupee registered a marginal decline of 7 paisas to settle at 214.95 against the US dollar after a fall of Re0.07 or 0.03%, suggesting it had reached a short-term equilibrium.
Since July 28, the rupee registered a significant recovery against the US dollar on positive developments related to dollar inflows from the UAE, Saudi Arabia, and the International Monetary Fund (IMF).
In a major development, the government appointed Jameel Ahmad governor of the SBP on Friday, taking over the role from Dr Murtaza Syed who had been until then fulfilling responsibilities as the acting chief.
The appointment comes at a time when the Monetary Policy Committee (MPC) of SBP is scheduled to meet on Monday, August 22, 2022 to decide on the policy rate.
Addressing a press conference, Federal Minister for Finance and Revenue Miftah Ismail on Thursday announced that the government has decided to remove the ban on imports of all products, a restriction that was imposed to control the outflow of dollars and arrest the rupee's massive decline in value.
However, he added that regulatory duty would be imposed in such a fashion that these goods would not enter Pakistan as finished goods.
“As it is a requirement of the international community, we will remove ban on all imports,” said Miftah.
The government also announced a 'mini-budget' with a heavy dose of taxes ahead of the IMF board meeting scheduled on August 29.
Meanwhile, the SBP reported a slight increase in its foreign exchange reserves, which rose by $67 million. However, they clocked in at still an alarming level of $7.9 billion as of August 12, 2022.
The low level of reserves has put the currency under pressure with the rupee hitting its all-time low in the inter-bank market last month.
Inter-bank market rates for dollar on Friday
BID Rs 215
OFFER Rs 215.50
Open-market movement
In the open market, the PKR gained one rupee for both buying and selling against USD, closing at 216 and 218, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 218 and 220 respectively.
Against UAE Dirham, the PKR lost 10 paisas for buying and 20 paisas for selling, closing at 59.60 and 60.20, respectively.
Against Saudi Riyal, the PKR gained 10 paisas for both buying and selling, closing at 57.20 and 57.70, respectively.
Open-market rates for dollar on Friday
BID Rs 216
OFFER Rs 218