KARACHI: The rupee gained 29 paisas against the dollar on Tuesday owing to external inflows related to Sukuks, dealers said.

The exchange rate ended at Rs176.43 to the dollar from the previous day’s closing of Rs176.72 in the interbank foreign exchange market.

The dealers said that the market witnessed recovery in the local currency owing to transfers of funds under international Sukuks floated by the government.

The inflows of Sukuks and expected transfer of the International Monetary Fund (IMF) next tranche of over $1 billion would help the central bank to improve foreign exchange reserves and it would also help the rupee to recover further, they added.

The foreign exchange reserves of the country deteriorated sharply. Pakistan’s liquid foreign exchange reserves plunged by $866 million to $22.482 billion by the week ended January 21, 2022, as against $23.35 billion by the week ended January 14, 2022.

The rupee during the current fiscal year remained under pressure. The local currency fell by Rs18.89, or 11.99 per cent, against the dollar from Rs157.54 on June 30, 2021 to the present level of Rs176.43.