Federal Budget

Rupee recovers with a Rs1.79 surge after buying pressure

Rupee recovers with a Rs1.79 surge after buying pressure

Business

Dollar was up 1.16pc during the previous session

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KARACHI (Dunya News/ Web Desk) – The rupee rebounded during early trading on Thursday after the losses suffered a day earlier with the official exchange rate for the US dollar recorded at Rs278.50.

It means the Pakistan rupee was up Rs1.79 after shedding Rs3.29 during the previous session in interbank trading when the closing value stood at Rs280.29 with a 1.16 per cent depreciation.

Similarly, the dollar depreciated in the open market as well where the exchange rate has so far dipped by Rs2 to the level of Rs280. 

There is a difference of opinion over the increase in dollar exchange rate during the previous two sessions. Some experts believe that it is a result of growing demand for dollar amid the upcoming foreign payments, but others insist it is artificial – meaning same old trend of hoarding or safe haven buying, if mildly described.

However, the latest gains made by the rupee give credence to the argument that the dollar buying is mainly a product of the attempt to manipulate the market.

One may recall that the rupee had nosedived to the Rs307.10 level in official exchange rate, forcing the government to act against the market manipulators and cross-border smuggling to dollar, which produced immediate results, propelling the local currency back to Rs276.83 against the US dollar on Monday.

However, the dollar made a comeback after that and closed at Rs280.29 on Wednesday with a net gain of Rs3.49 in two sessions – Tuesday and Wednesday.

However, the dollar made a comeback after that and closed at Rs280.29 on Wednesday with a net gain of Rs3.49 in two sessions – Tuesday and Wednesday.

It resulted in fears that the rupee might slide again amid the upcoming IMF review and the pressure exerted by the world’s top lender to raise the gas prices which will automatically fuel inflation and result in sustaining or further increase in the record-high interest rates of 22pc.