Rupee recovers by six paisas on contraction in inflation

Rupee recovers by six paisas on contraction in inflation

KARACHI: The Pak Rupee recovered six paisas against the dollar on Tuesday owing to lower growth in inflation for the first month of the current year.

The rupee ended Rs160.16 to the dollar from the previous day’s closing of Rs160.22 in the interbank foreign exchange market.

The rupee depreciated by 12 paisas on the first day of the current week owing to higher demand for import and corporate payments.

Currency dealers said that the market remained positive during the day due to ease in inflation growth for the month of January 2021.

The growth in headline inflation contracted by 5.7 percent on a year on year basis in January 2021 as compared to an increase of 8.0 percent in the previous month and 14.6 percent in January2020.

On a month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.7 percent in the previous month and an increase of 2.0 percent in January 2020.