KARACHI: The Pakistan Rupee (PKR) gained 24 paisas against the dollar in interbank foreign exchange market on Friday owing to lackluster demand for import payments ahead of Eid holidays.
The exchange rate ended Rs185.63 to the dollar from previous day’s closing of Rs185.87 in the interbank foreign exchange market.
Currency experts said that importers were cautious in making new orders due to Eid Holidays which are from May 02 to May 05, 2022.
The experts said that Eid related remittances also helped the rupee to make gain against the greenback. They said that overseas Pakistanis usually send additional amount to their loved ones for Eid related expenses.
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.
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.
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.