Rupee strengthens against dollar

KARACHI: The rupee recovered 1.09 against the dollar on Monday, owing to the record foreign exchange reserves of the country and an expectation of lower demand for import payments, dealers said.

The exchange rate ended at Rs161.23 against the dollar from last Friday’s closing of Rs162.32 in the interbank foreign exchange market.

The currency dealers said the local unit was supported by the record high foreign exchange reserves, following inflows of Eurobonds.

The foreign exchange reserves of the country reached $25.128 billion after a transfer of $1.04 billion, the State Bank of Pakistan (SBP) reported last week.

The local currency was also supported by measures taken by the government to prevent the spread of the coronavirus pandemic. The government has imposed various restrictions in the wake of the fourth wave of the Covid-19.

The dealers said following the imposition of new restrictions, the importers were cautious in placing fresh orders to their foreign sellers.

The rupee remained under pressure since the start of the current fiscal year due to the high current account deficit in June 2021. The dealers said the current account balance for July 2021 would set the trend of the exchange rate next month.

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