Rupee reaches 3-week high

Market talk suggests the rupee continued to gain strength in wake of an increase in supply of dollars in the market

KARACHI:

The rupee maintained its upward trend for the second consecutive day on Wednesday, gaining 0.74% (or Rs1.96) to a three-week high at Rs265.38 against the US dollar in the inter-bank market.

The rupee had closed at Rs267.34 against the greenback on Tuesday, according to the State Bank of Pakistan. The currency has cumulatively recovered 4.22% (or Rs11.20) in the past 12 days compared to an all-time low of Rs276.58/$ hit on February 3, 2023.

Market talk suggests that the rupee has continued to gain strength in wake of an increase in the supply of dollars in the market.

Exporters are selling dollars in the market over the outlook that the rupee will settle in the range of Rs265-275/$ in the short to medium term. They are also surrendering the foreign currency on expectation that Pakistan will resume the IMF programme.

Prior to the latest recovery phase, the rupee had lost 16.51% (or Rs45.69) to the record low over a period of 10 days from January 25 to February 3.

Published in The Express Tribune, February 16^th, 2023.

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