Rupee strengthens against dollar

The rupee strengthened against the US dollar at Rs170.53 in the inter-bank market on Friday compared with Thursday’s close of Rs170.87, according to the State Bank of Pakistan (SBP).

On October 6, 2021, Pakistani currency closed at an all-time low of Rs170.96 as demand for the foreign currency stood higher compared to its supply in the wake of increase in import payments, rising global commodity prices and worsening financial situation in Afghanistan.

The rupee has maintained its downturn since hitting 22-month high of Rs152.27 in May 2021. The SBP has injected $1.2 billion into the inter-bank market to defend the rupee in the ongoing fiscal year 2021-22 and has pumped a total of $5.8 billion since the Pakistan Tehreek-e-Insaf (PTI) government came to power in August 2018.

The SBP let the rupee depreciate massively in the inter-bank market after finalisation of an agreement with the IMF.

Published in The Express Tribune, October 9^th, 2021.

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