Rupee resumes recovery against dollar after undergoing correction

A currency dealer can be seen counting notes. — Reuters/File
A currency dealer can be seen counting notes. — Reuters/File
  • Rupee closes at Rs214.65 against US dollar in interbank market.
  • Gains 0.14% after undergoing correction in last two sessions.
  • Analysts say rupee is expected to remain under pressure till IMF’s meeting.

KARACHI: The Pakistani rupee on Friday once again resumed its recovery trend against the US dollar — after it underwent a correction in the last two sessions — in the interbank market.

The local currency closed at Rs214.65 against the greenback in the interbank market after gaining 0.14%, data released by the State Bank of Pakistan (SBP) showed.

The rupee — which emerged as the best-performing currency in the world on Monday — had lost over Re1 in the last two days (Wednesday-Thursday) as it underwent correction after it notched up the largest gain of 11% in the first half of August compared to all other currencies on the Bloomberg terminal.

Analysts and currency dealers believe that the currency is expected to remain under pressure till the International Monetary Fund’s board meeting which is scheduled to be held on August 29.

Meanwhile, the foreign exchange reserves also rose after a gap of over four weeks. Assurance regarding the availability of the US currency bolstered investors’ confidence in the local currency.

Investors, however, are trading cautiously as they keep a close eye on the possible impact of the coalition government’s decision to lift the import ban on non-essential and luxury items after three months.

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