Daily Times

Pakistani rupee snapped a six-session losing streak against the US dollar in the inter-bank market on Wednesday with the local unit rebounded with a gain of Rs2.49 (+1.44 percent) after Saudi Arabia announced an assistance package for Pakistan.

According to the State Bank of Pakistan, the US dollar opened at Rs175.27 and closed at Rs172.78. Within the open market, the rupee was traded at 174/ 175 per dollar.

A day earlier the Saudi government announced to deposit $3 billion with the State Bank of Pakistan to help the country in the balance of payment. Moreover, the Saudi government has announced to provide $1.2 billion crude oil on deferred payment of one year.

Currency experts said that the foreign currency market witnessed positive sentiment throughout the day. They were of the view that the local unit may gain appreciation in the coming days as there is strong likelihood of resumption of $6 billion Extended Fund Facility (EFF) by the International Monetary Fund (IMF).

The Pakistani rupee made an all-time low of Rs175.27 on Tuesday last due to external payment pressure. The Pakistani rupee gained Rs1.22 during this week against the US dollar, while depreciation during the fiscal year 2021-22 has been Rs15.36. The local unit has shed Rs12.51 against the US dollar in the current year 2021. The local currency has maintained a downtrend after it touched 22-month high of Rs152.48 in May 2021, losing a cumulative Rs20.47 in the past five months to date.

The official foreign exchange reserves of the State Bank recorded a decline of $1.646 billion to $17.492 billion by the week ended October 15, 2021 as compared with $19.138 billion by the week ended October 08, 2021. The SBP attributed the decline in foreign exchange reserves to external debt repayment, which included repayment of $1 billion against Pakistan International Sukuk.