KARACHI: The US dollar gained six paisas against the Pakistan Rupee (PKR) on Saturday due to higher foreign currency demand on the last day before long holidays.
The exchange rate ended at Rs185.69 to the dollar from previous day’s closing of Rs185.63 in the interbank foreign exchange market.
READ MORE: Rupee gains 24 paisas to dollar in interbank
Currency experts said that the market had seen dollar demand for import and other external payments ahead holidays for Eid ul Fitr.
The government has announced holidays from May 02 to May 05, 2022 on account of Eid ul Fitr.
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: Dollar appreciates 42 paisas against PKR
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.
READ MORE: Rupee recovers third straight day against dollar
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.
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.
