KARACHI
Pakistani rupee snapped its losing streak against the US dollar on Thursday by gaining 74 paisas (+0.41 percent).
According to the State Bank of Pakistan, the dollar opened at Rs178.24 in the interbank market and closed at Rs177.51. The dollar during the trading session touched the day’s high of Rs178.35. Within the open market, the rupee was traded at 178/178.50 per dollar.
The currency experts said that appreciation of the local currency can be attributed to the approval of the State Bank of Pakistan’s autonomy bill by the federal cabinet. They said that the year-end payment settlements have also dipped the demand for the dollar in the interbank market.
However, they warned that the rupee may join back its downward trend at the beginning of the new year as the government has to pay huge import bills, saying the widening of trade and current account deficits are major threats to the rupee’s stability.
The free-fall in the rupee was curtailed after the central bank on December 19 took measures to control the depreciation in the local currency by imposing curbs on the foreign exchange buying by individuals from the open market. An individual can buy a maximum of $10,000 per day and $100,000 in a year, according to the new restrictions.
The experts said that the measures taken by the SBP facilitated local currency to hold its stabilisation mode. They said though the rupee has set 14 lowest levels during the current month, these measures have halted the volatile movements. They said that the rupee’s overall depreciation against the US dollar has been around 0.69 percent as it devalued from 175.72 to 177.51 during December.
Overall, the rupee has gained Rs0.62 during the last four sessions while it shed Rs1.78 against the US dollar during the current month. The rupee has depreciated by Rs20.08 during the ongoing fiscal year 2021-22 and Rs17.30 in the current year 2021.
