KARACHI: The US dollar on Monday ended gaining spree of the Pakistan Rupee (PKR) and rebounded with a gain of 99 paisas.

The rupee ended Rs182.54 to the dollar from previous last Saturday’s closing of Rs181.55 in the interbank foreign exchange market.

READ MORE: Dollar plummets against PKR for seven consecutive days

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 Rs188.18 to the dollar on the day of monetary policy announcement.

READ MORE: Dollar retreats for 6th straight day; falls to Rs181.58

However, following the announcement the rupee rallied for seven straight days and recovered Rs6.63 against the dollar.

The rebound in dollar value on Monday may be attributed to the further depletion in foreign exchange reserves of the county.

Pakistan’s foreign exchange reserves hit a 22-month low after falling for nine consecutive weeks to $17.03 billion.

READ MORE: Rupee up 13 paisas to continue recovery against dollar

According to data released by the State Bank of Pakistan (SBP), the foreign exchange reserves of the country fell by $449 million to $17.028 billion by week ended April 08, 2022 as compared with $17.477 billion a week ago.

The foreign exchange reserves were at $17.971 billion by week ended June 26, 2020.

READ MORE: Rupee continues recovery to dollar for 4th straight day

Pakistan’s foreign exchange reserves have declined by $10.23 billion in the past seven months owing to extreme pressure of dollar demand for import payments and external repayment of government debt.

The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021.

KARACHI: The US dollar retreated against Pakistan Rupee (PKR) for the sixth straight day on Friday since the central bank aggressively increased the key policy rate on April 07, 2022.

The exchange rate ended at Rs181.58 to the dollar on Friday as compared with previous day’s closing of Rs181.69 in the interbank foreign exchange market.

READ MORE: Rupee up 13 paisas to continue recovery against dollar

The local currency has made sharp recovery against the dollar since the significant raise was announced in the policy rate on April 07, 2022.

The State Bank of Pakistan (SBP) announced an unprecedented increase in policy rate by 250 basis points to 12.25 per cent. The massive rise in interest rate surprised the market and trade and industry are in state of shock. The massive hike in policy rate also resulted in a sudden decline in demand for dollar.

This is the reason behind five consecutive gain in rupee value during past five trading sessions.

READ MORE: Rupee continues recovery to dollar for 4th straight day

The rupee hit all-time low of Rs188.18 to the dollar on April 07, 2022. Since then the rupee recovered Rs6.60 against the dollar during past six straight trading sessions.

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

READ MORE: Rupee makes recovery to dollar for third straight day

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

KARACHI: The Pakistan Rupee (PKR) continued to make recovery for the fourth straight day against the dollar on Wednesday since sharp enhancement in policy rate to 12.25 per cent.

The rupee ended Rs181.82 to the dollar from previous day’s closing of Rs182.02 in the interbank foreign exchange market.

READ MORE: Rupee makes recovery to dollar for third straight day

The rupee fell to all-time low at Rs188.18 to the dollar on April 07, 2022. On the same day the State Bank of Pakistan (SBP) announced a massive raise in interest rate by 250 basis points to 12.25 per cent from 9.75 per cent.

Prior to the policy rate increase the dollar was unabated for over a two week and rupee fell continuously.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

The rupee recovered around Rs6.36 against the dollar since the increase in the policy rate. The local currency recorded all-time low of Rs188.18 to the dollar on April 07, 2022.

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

READ MORE: Rupee rebounds sharply on massive interest rate hike

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: PKR witnesses record single day fall to dollar

KARACHI: The Pakistan Rupee (PKR) made recovery against the dollar for third consecutive day on Tuesday since the massive increase in key policy rate on April 07, 2022.

The rupee on Tuesday gained 91 paisas to close at Rs182.02 to the dollar from previous day’s closing of Rs182.93 in the interbank foreign exchange market.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

The State Bank of Pakistan (SBP) on April 07, 2022 issued monetary policy statement to increase the policy rate by 250 basis points to 12.25 per cent from 9.75 per cent. The policy rate was enhanced in an emergent meeting instead of a scheduled meeting.

The rupee recovered around Rs6.16 against the dollar since the increase in the policy rate. The local currency recorded all-time low of Rs188.18 to the dollar on April 07, 2022.

READ MORE: Rupee rebounds sharply on massive interest rate hike

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

READ MORE: PKR witnesses record single day fall to dollar

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: Dollar tops PKR 186.13 at interbank closing