Rupee gains against USD in interbank market

Currency stabilises after hitting record low a day earlier

KARACHI:

The Pakistani rupee gained Rs2.23 against the US dollar on Wednesday in the interbank market after days of depreciation by the local currency. 

The rupee touched Rs200.59 against the US dollar. The currency had dropped to a record low of Rs202.83 on Tuesday. The value of the dollar had risen sharply by a total of Rs.4.90 in the last two days,

With high expectations of the revival of the International Monetary Fund's (IMF) loan programme, the finance minister on Tuesday assured that adequate arrangements had been made for securing the much-needed loan, as the IMF programme was expected to become effective from next month.

Another contributing factor to the strengthening of the rupee is reportedly the government's denial of a foreign currency ban which put an end to the uncertainty that had gripped the market.

Exchange Companies Association of Pakistan General Secretary Zafar Paracha has suggested to the government to freeze the interbank rate of the dollar at Rs190.

He has also proposed that the government should link the volume of imports to that of exports, in order to equalise the value of goods being imported and exported, this he argues would help prevent the Pakistani rupee from devaluation.