Pakistani rupee touches one-year high against dollar

KARACHI: Pakistani rupee extended gains against the United States (US) dollar at the start of Wednesday’s trading in the inter-bank market, touching a one-year high, reported ARY News.

According to foreign currency dealers, the local currency appreciated by 38 paisa to 157.47 against the greenback. Yesterday, the dollar had closed at Rs157.85.

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Economic analysts say the rupee appreciation is a result of foreign inflows in shape of remittances and loans.

Workers’ remittances exceeded $2 billion for a record eighth consecutive month in January 2021. Pakistan received $2.3 billion worth of remittances last month, up by 19 per cent as compared to January 2020. However, remittances slightly decreased as compared to $2.4 billion in December 2020.

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Whereas, the current account deficit reduced to US$229 million in January 2021 from US$652 million last month. The SBP said that for the first seven months of the fiscal year 2020-21, the current account surplus is $912 million, a significant turnaround from the deficit of $2,544million during the same period last year.