KARACHI: Pakistani Rupee (PKR) on Tuesday maintained winning streak against the US Dollar for eighth consecutive session.

The rupee gained 1.65 to end at PKR 225.64 to the dollar from previous day’s closing of PKR 227.29 in the interbank foreign exchange market.

READ MORE: PKR continues upward journey for seventh consecutive session against dollar

The local currency gained PKR 14.07 against the dollar during the last eight sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 225.64 on October 04, 2022.

Currency experts said that latest appreciation in rupee value was due to a statement of Finance Minister Ishaq Dar, who a day earlier said the PKR was undervalued and actual value of the dollar was less than PKR 200.

READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26

Meanwhile, the international oil prices also crashed which helped the rupee to make gains.

It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.

During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.

READ MORE: PKR makes recovery against dollar for fourth straight session

Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

READ MORE: PKR strengthens sharply to dollar during last three sessions

The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

KARACHI: US dollar slipped against Pakistani Rupee (PKR) by 1.79 to PKR 225.50 in early trading at interbank foreign exchange market on Tuesday.

The dollar is being traded at PKR 225.50 as compared with the last day’s closing of PKR 227.29 in interbank foreign exchange market.

Experts said that latest statement of Finance Minister Ishaq Dar helped the rupee to make gain.

The finance minister a day earlier said that the local unit is undervalued and actual value of dollar is below PKR 200. Furthermore, he vowed to bring down the value of the greenback in coming days.

READ MORE: PKR continues upward journey for seventh consecutive session against dollar

It is worth mentioning that the rupee is constantly gaining value against the dollar since the nomination and assumption the charge of finance ministry by Ishaq Dar.

The PKR a day earlier continued its upward journey against the greenback and strengthened for seventh consecutive session.

The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.

The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.

READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26

It is worth mentioning that the local unit recorded the all-time low level of PKR 239.94 to the dollar on July 28, 2022. Although after the IMF deal the rupee appreciated against the dollar but following the disbursement of funds under Extended Fund Facility (EFF) the rupee again witnessed a steep decline to reach near to the record low at PKR 239.71 to the dollar on September 22, 2022.

READ MORE: PKR makes recovery against dollar for fourth straight session

Khurram Schehzad, a senior analyst, said the finance minister should not talk about setting currency parity, or at least not that openly, as its purely the prerogative of State Bank of Pakistan (SBP) and we have committed this in writing with the IMF that no one, at least from the ministry of finance will intervene in any way into the central bank matters.

“We should rather hold SBP accountable for achieving realistic currency parity (in line with fundamentals) as well as taming inflation (demand side), while managing the supply-side disruptions by a thorough strategy (farm to market management with necessary imports in time),” he added.

READ MORE: PKR strengthens sharply to dollar during last three sessions