Rupee recovers from historic low against dollar

KARACHI: The rupee recovered against the dollar during early day trading in the open market on Monday as the greenback fell by Rs 3 to Rs 136, ARY News reported.

Previously, the US dollar was trading at Rs 139.02 in the interbank market.

The value of the dollar had shot up by Rs8 in the interbank market during trading on Friday, taking it to Rs 142, and by the day end it closed at Rs 139.

Commenting on a latest drop, experts said the appreciation of rupee is a temporary phenomenon, and it could depreciate again in view of foreign loan payments the government was about to undertake.

The 100-index of Pakistan Stock Exchange also fell by 700 points from the current 40,000 pts in the early day trading.

The current account deficit was said to be reason behind latest appreciation of the US dollar. The government is holding talks with the International Monetary Fund, and the IMF has asked Pakistan bring down rupee in terms of the dollar, our correspondent had reported.

Economic expert, Samiullah Tariq, told ARY News, said the reserves of the State Bank of Pakistan had declined below critical level. He said the currency was facing a huge pressure at the moment.

On October 9, the dollar had dramatically surged to Rs 133.64 and it was highest ever in the country at that time.

The SBP had explained the move as reflective of current account dynamics and a demand-supply gap in the foreign exchange market.

“Although the current account deficit narrowed in August 2018, a consistent increase in the oil import bill on account of rising international oil prices has exerted pressure in the foreign exchange market,” the central bank said in a statement.

“The SBP is of the view that this adjustment in the exchange rate along with lagged impact of recent hikes in the policy rate and other policy measures to contain imports will correct the imbalances in the external account,” it added.