KARACHI: The Pakistani Rupee made sharp recovery of Rs7.38 to Rs231 against the dollar in midday interbank foreign exchange market on Wednesday.
The exchange rate recorded a recovery of Rs7.38 against the dollar at Rs231 in midday trading from previous day’s closing of Rs238.38 in the interbank foreign exchange market.
The rupee recorded historic low of Rs239.94 against the dollar on July 28, 2022. However, since than the rupee made recovery of Rs1.56 against the dollar in the interbank foreign exchange market.
Currency experts said that the fall in import bill during the month of July 2022 eased the pressure on the foreign currency demand. Further, the International Monetary Fund (IMF) likely to release the tranche by end of this month.
The free-fall in rupee continued against the greenback due to political instability and weak economic indicators.
The experts said that the continuous decline in rupee value may also be attributed to the fall in foreign exchange reserves.
The foreign exchange reserves of the country have further declined.
Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.
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 $11.986 billion.
The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.