KARACHI: The Pakistani rupee on Thursday appreciated by 2.27 percent against the US dollar, closing at Rs 207.23 by ending weeks of a losing streak in the interbank market, traders and analysts said.
The rupee appreciated by Rs4.7 in the interbank market a day after Finance Minister Miftah Ismail announced China had signed the agreement with Pakistan to rollover a $2.3 billion loan.
The South Asian country, whose foreign exchange reserves have declined by $748 million to stand at $8,237.7 million during the week ended on June 17, 2022, is expecting the Chinese inflows sometimes this weekend, according to the central bank’s data released on Thursday.
Pakistan’s reserves declined mostly due to external debt and import payments.
“Today was a good day for Pakistan’s economy as the rupee strengthened against the dollar mainly due to talks with the International Monetary Fund (IMF),” Zafar Paracha, General Secretary of Exchange Companies Association of Pakistan (ECAP), told Arab News.
Paracha said another reason for the rupee gaining strength was that exporters had sold around $150 million in the market, which they were holding back.
“Similarly, importers also did not opt to buy dollars so as the sentiments changed, supply increased and demand subdued. The currency has appreciated.”
Currency dealers hope inflows from China will strengthen the rupee further, so much so that it gains by Rs10 against the dollar.
“I firmly believe that the dollar-rupee parity should not be more than Rs 190 in the interbank market,” Paracha said. “And when we look at our financial credentials, the currency should not exceed Rs 160 against the dollar,” he added.