Daily Times

Pakistani rupee continued recovery against the US dollar in the inter-bank market for the second straight day on Thursday with the local unit gaining 52 paisas (+0.30 percent) on the back of the Saudi package.

According to the State Bank of Pakistan, the US dollar opened at Rs172.78 and closed at Rs172.26. Within the open market, the rupee was traded at 173.50/ 174 per dollar. Former chairman of Federal Board of Revenue (FBR), Shabbar Zaidi said in a tweet, “Positive trend in rupee versus USD after Saudi support indicates & confirms speculation. I reiterate that the real value (of a dollar) is 165 (rupees).”

He said that the people should consider that speculation in currency and hoarding are against national interest. He called for a national action plan for the economy, saying the people are suffering.

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 Rs1.74 during this week against the US dollar, while depreciation during the fiscal year 2021-22 has been Rs14.84. The local unit has shed Rs11.99 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 Rs19.97 in the past five months to date.

Earlier on Tuesday last, 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.