KARACHI: The rupee rebounded on Tuesday and gained 48 paisas against the dollar in the interbank foreign exchange market, dealers said.

The exchange rate ended at Rs175.72, compared with Rs176.20 against the dollar on the previous day in the interbank foreign exchange market.

The local currency strengthened after the State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD) signed the agreement for a $3 billion deposit fund and $1.2 billion to finance the trade of oil derivatives.

Analysts said the rupee witnessed an increase as the Saudi fund will support the central bank’s foreign exchange reserves and mitigate the adverse effects of the Covid-19 pandemic.

Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin had earlier claimed that the Saudi fund would result in appreciation of the Pakistani rupee against the dollar and help curb inflationary pressures.

Meanwhile, in the open market, the buying and selling of the dollar have been recorded at Rs176.60 and Rs178.10, till the filing of this report.

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