KARACHI: The Pak Rupee (PKR) recovered 25 paisas against the dollar on Friday owing to ease in international oil prices.
The rupee ended at Rs176.24 to the dollar, up from the previous day’s closing of Rs176.49 in the interbank foreign exchange market.
Currency experts said that rising coronavirus cases around the globe caused a slowdown in demand, contributing to the rupee’s recovery. International oil prices also eased over the past couple of days. The benchmark Brent crude fell to $86.83 per barrel, down from $89.17 per barrel a few days ago.
It is important to note that the local currency recovered despite reports of falling foreign exchange reserves. Pakistan’s liquid foreign exchange reserves dropped by $551 million to $23.35 billion by the week ended January 14, 2022, compared with $23.901 billion the previous week. The official reserves of the SBP fell by $562 million to $17.036 billion, down from $17.598 billion a week earlier. The SBP attributed the decline to external debt repayments and other financial obligations.
Market analysts noted that the PKR’s slight recovery reflects a temporary relief amid global uncertainties and oil price fluctuations. They also emphasized the need for strong fiscal policies and foreign inflows to stabilize the rupee in the long term, as external pressures and trade deficits continue to pose challenges to Pakistan’s currency outlook.