For third consecutive day, rupee makes gains against US dollar

KARACHI,: As Pakistan Muslim League-Nawaz (PML-N) leader Senator Ishaq Dar took oath as the finance minister of Pakistan, the rupee continued to make marked improvements, gaining another Rs1.79 in the interbank against the US dollar on Wednesday.
According to data released by the State Bank of Pakistan (SBP), the rupee’s rate of appreciation slowed from over one percentage point daily to under a percentage point to 0.77%.
The dollar on Wednesday shed around Rs1.79 to fall from Rs233.91 – at which it had closed on Tuesday – to Rs232.12.
This means that the rupee has gained around Rs7.59 in the past three days ever since it was confirmed that Dar is returning.
Earlier on Wednesday, the rupee gained around Rs2.41 against the US dollar during intraday trading in the interbank market.
On Monday, the rupee had shown the first consistent signs of recovering against the dollar as it appreciated by Rs2.63 and closed at Rs237.02 during intraday trading in the interbank market.
Subsequently on Tuesday, the rupee appreciated by another Rs3.11 in the interbank market, improving to Rs233.91.
Meanwhile, on Wednesday, the value of rupee improved by another Rs2.41, going up to Rs231.50. The last time it was at t his level was on September 13.
The rupee’s recovery coincides with the return of Ishaq Dar who spent the past five years in ‘self-exile’.
On Tuesday, Dar took oath of his senate seat and on Wednesday, he took oath as finance minister before heading for his first cabinet meeting.
Dar hopes to help Pakistan return to the economic position it had reached between 2013 and 2017, when the interest rate was the lowest, the growth rate was the highest in decades, and other macroeconomic indicators, such as the stable rupee and high reserves, were also encouraging.
“We will try to arrest the economy’s downward trend and change its direction by the grace of God,” Dar said.
He reiterated that there was a politically motivated tax on not filing returns while he had never delayed filing his income tax returns.
Open market
In the open market, the price of a single dollar fell to Rs233.50 on Tuesday as the rupee continued to perform strongly.
Currency dealers say that the rupee’s value has also been supported by the $500 million reduction in the current account deficit.
It should be noted that according to the statement issued by the State Bank of Pakistan (SBP), during the last week, the foreign exchange reserves in the Central Bank decreased by $176 million. -PNP