Rupee recovers 18 paisas against dollar

Staff Reporter BOL News

01st Oct, 2021. 04:38 pm

KARACHI: The rupee recovered 18 paisas against the dollar on Friday, after restrictions were imposed through cash margin requirements on imports.

The exchange rate ended at Rs170.48 against the dollar from the previous day’s closing of Rs170.66 in the interbank foreign exchange market.

The local unit hit an all-time low of Rs170.66 on September 30, 2021. The rupee recorded a decline of Rs12.94, or 8.21 per cent, against the dollar till the closing of trade on October 1, 2021.

The dealers said the rupee recovered; following import restrictions imposed by the State Bank of Pakistan. A day earlier, the central bank imposed a 100 per cent cash margin requirement on the import of additional 114 items.

With the new addition, the import restriction of cash margin is now on 525 items.

“The measure will help discourage imports of such items and; thus, support the balance of payments,” the SBP said in a statement.

The dealers said the pressure on the exchange rate was also released due to the close of the quarter ended on September 30, 2021.

They said the quarterly payments requirement had also escalated the dollar demand.

Despite recovery of the rupee; following import restrictions, the dealers said widening of trade deficit and current account deficit remained major concerns for the rupee stability in the coming days.

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