Pak rupee makes strong recovery against dollar, gains Rs13.78 in interbank

On Thursday, the dollar reached all-time high of Rs298.93 after gaining Rs8.71 in the interbank mark

KARACHI (Web Desk) - After Thursday's historic decline in the Pakistani rupee's value, the local unit gained Rs13.78 against the US dollar in a "dramatic twist" in early trading session on Friday.

The dollar was being traded at Rs285.08 during the inter-bank trade around 03:30pm. On Thursday, the dollar reached all-time high of Rs298.93 after gaining Rs8.71 in the interbank market, and Rs305 in the open market.

In the open market, the greenback lost Rs11 to close at Rs294 as a day earlier the greenback touched Rs305, the highest in the country's history.    

The news of PTI Chairman Imran Khan's release by the Supreme Court of Pakistan and later bail was said to be a prime factor in recovery of the local unit against the greenback.    

The Pakistani rupee gained strength after the demand from importers relatively declined as oil payments were released a day earlier.

-- 'Bloodbath' as PKR touches all-time low of 298.93 against US dollar --

The Pakistani rupee on Thursday continued setting new records in its value against the US dollar as the local unit lost Rs8.71 in the interbank market on Thursday.

The local currency closed at Rs298.93 at around 03:30pm. In the open market, the dollar jumped by Rs10 to close at Rs305 against the Pakistani rupee.

The dollar has appreciated Rs15.34 against the Pakistani rupee in the last four days. The greenback gained Rs120 against the local currency during 13-month tenure of Shehbaz Sharif as the prime minister of Pakistan.

The weakening of the local unit is being attributed to the ongoing political turmoil after the arrest of PTI Chairman Imran Khan and other key leaders.

A day earlier, the local currency posted a record loss against the US dollar, depreciating Rs5.15 per cent in the inter-bank market. At around 01.50pm, the Pakistani rupee was being quoted at 290. The rupee had also sustained losses against the US dollar on Tuesday, settling at 284.84 in the interbank market.

The local unit also lost Rs3 against the greenback in open market trade amid countrywide violence after the arrest of PTI Chairman Imran Khan.

Currency experts said the depreciation in the rupee's value came on account of a rise in uncertainty over the resumption of the International Monetary Fund (IMF) bailout programme, amid heightened political tensions.

They said political volatility had exacerbated the uncertainty in the market regarding the IMF programme. The remarks comes after the National Accountability Bureau (NAB) on Tuesday arrested the PTI chief through Rangers personnel in Al-Qadir Trust case.

The high-profile arrest triggered massive protests across twin cities like in other parts of the country.