Dollar appreciates 42 paisas against PKR

Dollar appreciates 42 paisas against PKR

KARACHI: Dollar made gain of 42 paisas against the Pakistan Rupee (PKR) on Thursday ending three days recovery streak of the local currency.

The exchange rate ended at Rs185.87 to the dollar from previous day’s closing of Rs185.45 in the interbank foreign exchange market.

READ MORE: Rupee recovers third straight day against dollar

Currency dealers said that the local currency was under pressure due to upcoming holidays of Eid ul Fitr and importers placing advance demand for foreign payments.

The rupee during the outgoing week made recovery owing to resumption of talks with the IMF.

The appreciation in rupee value to recent talks of Pakistan’s new finance minister with the management of the IMF regarding initiation of stalled loan program.

READ MORE: Rupee recovers 43 paisas to dollar in interbank

Further, both the sides also agreed to remove unnecessary subsidy to ease burden on the government to spare funds for development projects.

The exchange rate is remained volatile during past one month due to uncertain political situation and massive decline in foreign exchange reserves.

The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.

READ MORE: Rupee gains 70 paisas to dollar on IMF talks

Previously, the rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.

The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low PKR 188.18 to the dollar on the day of monetary policy announcement.

READ MORE: Dollar rebounds to PKR 186.75 in interbank