KARACHI: The Pakistani Rupee (PKR) recovered 57 paisas against the dollar on Friday to end at Rs239.37 in the interbank foreign exchange market.
The exchange rate recorded a recovery of 57 paisas in rupee value to end at Rs239.37 from previous day’s closing of Rs239.94, the record low level of the local currency, in the interbank foreign exchange market.
The free-fall in rupee continued against the greenback for the last many days due to political instability and weak economic indicators.
Currency dealers said that external payment pressure causing a continuous decline in rupee value.
The dealers said that the continuous decline in rupee value may also be attributed to the fall in foreign exchange reserves.
The foreign exchange reserves of the country have further declined.
Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.986 billion.
The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.
The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.