Rupee undergoes downward correction against US dollar



2022-02-09 16:34:00

A foreign money seller counting Rs5,000 notes. — AFP/File
  • Rupee closes day at Rs174.89 against the US dollar.
  • Analyst says rupee is in “correction mode”.
  • Pakistani rupee has depreciated by 11.01% since July 1, 2021.

KARACHI: The rupee continued to register marginal losses against the US dollar on Wednesday amid a slight uptick in dollar demand from importers.

Based on the State Financial institution of Pakistan (SBP), the rupee closed at Rs174.89 against the US dollar within the interbank market.

Talking to Geo.television, Pakistan-Kuwait Funding Firm’s Head of Analysis and Improvement Samiullah Tariq mentioned: “Pakistani rupee appreciated significantly due to IMF agreement, better trade numbers and Sukuk inflow.”

It’s pertinent to say right here that the native foreign money had been on a profitable streak following the Worldwide Financial Fund’s (IMF) approval for its sixth overview of the $6 billion programme.

With the recent lower of 0.22%, the Pakistani rupee has depreciated by 11.01% (or Rs17.35) because the begin of the present fiscal 12 months on July 1, 2021, information launched by the central financial institution revealed.

The rupee had maintained a downward pattern for the previous 9 months. It has misplaced 14.85% (or Rs22.62) thus far, in comparison with the report excessive of Rs152.27 recorded in Might 2021.

“Rupee is in correction mode,” Tariq mentioned, predicting that the Pakistani foreign money ought to commerce within the vary of Rs174-176.

In the meantime, some change sellers imagine that the Pakistani rupee posted nominal losses weighed by import funds.

“We saw some dollar demand from importers and corporates, while supplies weakened,” a international change seller mentioned.

Forex sellers imagine that the foreign money is stabilising and the motion will depend upon the financial information, significantly commerce numbers.

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