KARACHI: The rupee recovered 31 paisas against the dollar on Friday, as the parliament approved the Finance (Supplementary) Bill, 2021, which contained measures to restrict imports, dealers said.

The rupee ended at Rs176.06 against the dollar from the previous day’s closing of Rs176.38 in the interbank foreign exchange market.

The dealers said the import restrictions approved by the National Assembly a day ago had a positive impact on the exchange rate.

The government on December 30, 2021 introduced the bill to meet one of the conditions of the International Monetary Fund (IMF) for approval of the next tranche of over $1 billion.

Further, the legislations were made to withdraw exemptions and concessions on the import of luxury and non-essential items.

The dealers said the dollar demand was seen during the day due to the last trading day of the week and ahead of the two weekly holidays.

The rupee was also supported by the measures taken by the State Bank of Pakistan (SBP) to ensure the realisation of export receipts within 120 days.

The SBP on January 5, 2022 directed the exporters to realise their export receipts within 120 days from the date of shipment instead of 150 days.

However, the dealers said the rising international oil prices remained a threat to the rupee stability. The oil prices surged above $85/barrel in the international markets.

The rupee remained under pressure since the start of the current fiscal year. The local unit fell Rs18.53, or 11.76 per cent, against the dollar from Rs157.54 on June 30, 2021 to the current level of Rs176.07.

In the open market, the buying and selling of the dollar was recorded at Rs176.90/Rs178.40 at 3:45pm PST.

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