Rupee recovers 43 paisas to dollar in interbank

Rupee recovers 43 paisas to dollar in interbank

KARACHI: The Pakistan Rupee (PKR) recovered another 43 paisas against the US dollar on Tuesday owing to expected inflows of funds from various avenues.

The rupee ended Rs185.62 to the dollar from previous day’s closing of Rs186.05 in the interbank foreign exchange market.

READ MORE: Rupee gains 70 paisas to dollar on IMF talks

It was straight second day the rupee made recovery against the greenback. The local unit recovered 70 paisas against the foreign currency a day earlier.

Currency analysts attributed 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.

READ MORE: Dollar rebounds to PKR 186.75 in interbank

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.

READ MORE: Rupee ends 4-day losing streak against dollar

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.

READ MORE: Dollar ends near PKR 187 in interbank market

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