Pakistani rupee scores massive gain against US dollar, up by Rs2.02

ISLAMABAD: There was no let-up in Pakistani rupee’s comeback spree as the local currency yet again outclassed the US dollar in the early interbank trading on Friday.
As per the forex dealers, the Pakistani rupee surged by Rs2.02 as the business came to a halt for the week in the interbank market. The greenback ended the day at at Rs219.92.
Experts were of the view that hoarders are now also bringing their dollars into the market. On Wednesday, the US dollar ended the day at Rs221.94, down by Rs2.
The surge in rupee’s value has lessened the burden of foreign debt to the tune of Rs2,600 billion, said Finance Minister Ishaq Dar while talking to newsmen in Islamabad on Friday morning. “Internationally the dollar was on the rampage against other world currencies like euro and pound. But in Pakistan, the situation is totally opposite to it,” he added.
Experts opined that the recent encouraging trade balance data, hopes from multilateral institutions of additional inflows were the additional factors for the Pakistani rupee to reclaim its lost value.
The trade deficit fell 31 percent year-on-year to $2.88 billion in September, according to data from the Pakistan Bureau of Statistics. Exports slightly fell 1 percent to $2.39 billion in September from $2.41 billion a year earlier.
Imports declined 20 percent year on year to $5.27 billion.
The deficit in the first quarter (July-September) of FY2023 narrowed 21.4 percent to $9.2 billion against $11.72 billion in the same three months of the last year.
The State Bank of Pakistan (SBP) governor had informed the National Assembly’s Standing Committee on Finance the other day that action would be taken against banks and forex exchange companies involved in creating volatility in the exchange rate upon the finalisation of the inquiry. -NNI