Rupee continues upward march
Photo: file
Pakistani rupee maintained its uptick for the second consecutive working day on Wednesday, increasing by 0.25%, or Rs0.70, to Rs283.20 against the US dollar in inter-bank market.
The gradual recovery of the currency came in the wake of a slowdown in demand for US dollars for imports, which were partially closed amid financial crisis in the country.
With the latest increase, the rupee regained 0.28%, or Rs0.81, in two days. It came following appreciation of 0.82%, or Rs2.32, to Rs284.03 against the greenback on Monday.
Market talk suggests that the supply of foreign currency has slightly improved in the inter-bank market, as overseas Pakistanis are sending higher remittances to their family members back home to help them cope with high inflation during Ramazan, which is set to begin on Friday.
Historical data suggests the inflow of workers’ remittances peaks each year before and during Ramazan.
Moreover, the rupee maintained its uptick on reports that it had become significantly undervalued. Any permanent recovery, however, will come once the inflows surge.
Published in The Express Tribune, March 23rd, 2023.
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