KARACHI: The Pak Rupee made significant recovery against the dollar on Thursday owing to inflows of export receipts and remittances.
The rupee ended Rs167.43 to the dollar from previous day’s closing of Rs168.43 in interbank foreign exchange market.
Currency experts said that the market sentiments improved after a scheme announced by the State Bank of Pakistan (SBP) to attract overseas Pakistanis to invest in domestic capital market.
A day earlier, the governor of the central bank in an interview said that overseas Pakistanis can invest in the local bourses through digital accounts. In this regard commercial banks would facilitate the overseas Pakistanis.
Analysts further noted that improved liquidity conditions in the interbank market also supported the rupee’s upward movement, as exporters continued to offload their dollar holdings to meet local currency needs.
The steady inflow of workers’ remittances, particularly from the Middle East, played a crucial role in easing pressure on foreign exchange reserves. Market participants expect the rupee to maintain a stable trajectory in the coming sessions, provided inflows remain consistent and external payment obligations stay manageable.
However, they cautioned that global dollar strength and rising import demand could pose risks to the currency outlook. The central bank’s proactive measures are likely to enhance investor confidence and support long-term stability in the foreign exchange market.