Rupee sees minor gain against US dollar in interbank market

KARACHI: The Pakistani rupee finally snapped its multi-day losing steak as it registered a slight gain of 0.01% against the greenback in the interbank market on Friday.
According to the State Bank of Pakistan (SBP), the rupee closed at 221.92 after an appreciation of Re0.03 or 0.01% in the interbank market compared to its Thursday closing of 221.95 against the dollar.
The local unit ended at 221.95 per dollar after losing Re0.52 or 0.23% on Wednesday. Moreover, the dollar has been gaining against major currencies after Federal Reserve Chair Jerome Powell signalled US interest rates will likely peak at a higher level than markets expected.
On the other hand, the pound sterling sank after the Bank of England raised rates but warned of a “very challenging outlook.”
Analysts said the SBP’s allowing the exchange companies to trade 20% of remittances in the open market will ease pressure on the rupee. The SBP on Thursday allowed exchange companies to trade 20% of remittances in the open market to ease pressure on the rupee. Federal Minister for Finance Ishaq Dar earlier this week announced clearance of Letters of Credit (LCs) up to $50,000, which spiked the dollar demand from importers. Agencies