Rupee continues to recover against dollar

Staff Reporter BOL News

28th Oct, 2021. 03:54 pm

A currency exchange dealer holds $100 bills in his hand. Photo: Athar Khan/Bol News

KARACHI: The rupee continued to make recovery and gained 52 paisas against the dollar on the second straight day on Thursday, dealers said.

The exchange rate ended at Rs172.26 against the greenback from the previous day’s closing of Rs172.78 in the interbank foreign exchange market.

The local currency has witnessed a gain of Rs3.01, or 1.72 per cent, against the dollar during the last two days. The recovery in the local unit can be attributed to the announcement of Saudi Arabia to provide financial assistance to Pakistan to help its balance of payments position.

The rupee hit the historic low of Rs175.27 on October 27, 2021.

Saudi Arabia late Tuesday night announced an additional support of $3 billion to Pakistan for building its foreign exchange reserves.

The additional financial support is besides a $1.2 billion dollars deferred oil facility to Pakistan to help its balance of payments position, an official statement said.

According to the Saudi Press Agency (SPA), the Saudi Fund for Development in a “generous gesture” announced a deposit of $3 billion dollars with the State Bank of Pakistan (SBP) to help the government support its foreign currency reserves and counter the impact of the coronavirus pandemic.

The dealers said Pakistan needs more inflows to stabilise the local currency. They said the exchange rates are facing immense external payments pressure.

The rupee remained under pressure since the start of the current fiscal year. The local currency fell Rs14.72, or 9.34 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs172.26 on October 28, 2021.

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