KARACHI: Pakistan’s national currency on Thursday recouped some losses against the United States dollar (USD) in the interbank market, currency dealers said, attributing the rupee appreciation to market correction the previous day.
The Pakistani rupee fell sharply against the dollar on Wednesday due to a number of reasons, including import payment pressure, after gaining 10.9 percent, or Rs30.3, against the greenback for a consecutive 28 sessions.
The local currency fell Rs3.26, or 1.16 percent, against the dollar in the interbank market on Wednesday to close at 280.29, according to the State Bank of Pakistan (SBP), down from Tuesday’s rate of 277.03.
However, on Thursday the currency recovered by around Rs2 against the greenback and was trading at Rs278 in mid-day trading, according to the Exchange Companies Association of Pakistan (ECAP).
“The currency market is in correction mode now,” ECAP general secretary Zafar Paracha told Arab News.
He blamed “speculation and manipulation” of the currency market by banks for Wednesday’s sharp depreciation of the rupee, saying “all the indicators have turned positive after Pakistan’s army chief took administrative measures.”
Pakistan’s rupee had gained over 6.1 percent against the dollar in September, following an official clampdown on illegal foreign exchange trade in grey and black markets by security agencies. September’s gains and going into October had almost made up for all of the rupee’s losses in August.
The rupee hit a record low of 307.1 against the dollar on Sept. 5 but made a sharp recovery since the country’s financial regulator and security agencies began taking action the next day to curb black market operations.