Rupee inches up against dollar to end PKR 221.92

Rupee inches up against dollar to end PKR 221.92

KARACHI: Pakistani Rupee (PKR) gained three paisas against the US dollar on Friday as the central bank allowed exchange companies to retain 20 per cent of workers’ remittances.

The exchange rate witnessed a gain in rupee value to end at PKR 221.92 to the dollar from previous day’s closing of PKR 221.95 in the interbank foreign exchange market.

READ MORE: Dollar extends gain to reach PKR 221.95 in interbank

The market opened with higher demand for dollar due to an attack on former Prime Minister Imran Khan. The political instability kept the pressure during the day. However, the reports that the State Bank of Pakistan (SBP) had allowed the exchange companies to retain 20 per cent of the workers’ remittances helped the market sentiments to improve.

READ MORE: Dollar gains 78 paisas to end PKR 221.43 in interbank

Besides, latest date showed improvement in foreign exchange reserves position.

Pakistan foreign exchange reserves have increased by $1.527 billion to $14.69 billion by week ended October 28, 2022 after transfer of funds from Asian Development Bank (ADB).

The country’s foreign exchange reserves increased to $14.689 billion by week ended October 28, 2022 as compared with $13.162 billion a week ago i.e. October 21, 2022.

READ MORE: Rupee rebounds after Dar holds meetings with banks, exchange companies

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 $12.539 billion.

The official foreign exchange reserves of the State Bank also increased by $1.473 billion to $8.913 billion by week ended October 28, 2022 when compared with $7.44 billion a week ago.

READ MORE: Rupee crashes to dollar as PTI long march starts

Currency experts said that the dollar witnessed appreciation globally following a sharp rise in treasury yields after the Federal Reserve signaled the interest rates would likely spike.

The Fed a day earlier raised its benchmark funds rate by 75 basis points to 3.75-4 per cent as widely expected.