Rupee strengthens against dollar

SBP has injected $1.2 billion into the inter-bank market


Our Correspondent January 13, 2022
The rupee dived to Rs178 against the dollar in the open market, reported the Exchange Companies Association of Pakistan. Photo: file

KARACHI:

The rupee strengthened against the US dollar at Rs176.23 in the inter-bank market on Wednesday compared with Tuesday’s close of Rs176.63, according to the State Bank of Pakistan (SBP). On December 29, 2021 the rupee hit an all-time low of Rs178.24 against the greenback as demand for the dollar was higher compared to its supply in the wake of an expanding current account deficit, swelling imports, rising global commodity prices and uncertainty about the resumption of IMF loan programme. Earlier, the announcement of $3 billion cash deposit by Saudi Arabia in the State Bank helped the rupee to appreciate, however, the recovery proved short-lived. The rupee had been on the downtrend 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 and has pumped a total of $5.8 billion since the Pakistan Tehreek-e-Insaf (PTI) government came to power in August 2018.

Published in The Express Tribune, January 13th, 2022.

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