KARACHI: The Pak Rupee (PKR) on Tuesday made a gain of 40 paisas against the US dollar in the interbank foreign exchange market.
The rupee ended Rs174.89 to the dollar from last day’s closing of Rs175.29 in the interbank foreign exchange market.
The rupee has recovered 84 paisas against the dollar during past two sessions since the State Bank of Pakistan (SBP) decision to enhance the Cash Reserves Requirement (CRR).
The SBP last Saturday decided to increase the average CRR from 5 percent to 6 percent and minimum CRR to be maintained each day from 3 percent to 4 percent.
The SBP has decided the measure following the rupee hit all-time low at Rs175.73 against the dollar on November 12, 2021.
The large imports are continuously increasing the dollar demand. The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year.
Market experts said the rupee’s short-term recovery is largely driven by administrative measures and improved liquidity conditions in the banking system. However, they cautioned that sustained stability will depend on narrowing the trade deficit, controlling import growth, and ensuring steady inflows from exports and remittances in the coming months.
