Recent corrective measures taken by the State Bank of Pakistan (SBP) firmed the rupee value, gaining 1.8 percent versus dollar last week, money experts said.
In the interbank market, the rupee posted 85 paisa gain versus dollar for buying and selling at Rs 59.60 and Rs 59.90, respectively.
The rupee followed suit in open market and picked up 65 paisa versus dollar for buying and selling at Rs 60.30 and Rs 60.40, respectively.
Versus euro, the rupee managed to recover Rs 1.30 for buying and selling at Rs 76.85 and Rs 77.15, respectively.
In the first four months of current fiscal year, the rupee had lost nearly five percent after touching the new low at Rs 61.50 for a dollar, they observed. Soaring oil prices in world markets pushed the oil payment bills higher, which sparked the demand for dollars by importers, they noted. According to a report, as a result of higher payments, the July-October trade deficit widened by 355 percent.
After observing sharp volatility in the currency market, the SBP decided to take steps to ward off speculations in the forex regime, experts said.
Falling value of dollar propelled the exporters to come out with their dollar holdings, which also aided the rupee to recover more gains in terms of the greenback, dealers said.
In addition, the rupee maintained its surge over dollar despite the settlement of a 100 million dollars swap payment by the Pak-Arab Refinery, they observed. The SBP not only paid that amount but also provided required dollars to oil importers for payments.
According to weekly statement by State Bank, the total liquid foreign exchange reserves held by the country stood at 12.2525 billion dollars.
As a result of the rupee's recovery versus the dollar, the gap between the official and open market rates narrowed. This trend was likely to help in increasing the remittances more in the near future, they said. They said that on the other hand it might increase interest rates in the coming days.
The president of the Forex Association of Pakistan (FAP) said that the moves by the central bank would definitely restrict the speculative buying of dollars.
INTERBANK RATES: On Monday, the dollar was available at Rs 60.85 and Rs 60.95. On Tuesday, the rupee managed to gain 30 paisa for buying and selling at Rs 60.55 and Rs 60.60. On Wednesday, the rupee shed three paisa versus dollar for buying and selling at Rs 60.58 and Rs 60.63, respectively.
On Thursday, the rupee maintained its surge versus dollar, gaining six paisa for buying and selling at Rs 60.50 and Rs 60.57, respectively. On Friday, the rupee managed to gain 28 paisa versus dollar for buying and selling at Rs 60.25 and Rs 60.30, respectively.
On Saturday, the rupee maintained its firmness, gaining 65 paisa versus dollar for buying and selling at Rs 59.60 and picking up 40 paisa for selling at Rs 59.90.
OPEN MARKET RATES: On November 1, the dollar was available at Rs 61.65 and Rs 61.75, dealers said. The euro was available at Rs 78.15 and Rs 78.45.
On November 2, the rupee posted further gain of 75 paisa versus dollar for buying and selling at Rs 60.90 and Rs 61.00, respectively. The local currency also extended its winning ground versus euro for buying and selling at Rs 76.15 and Rs 76.45 in modest activity.
On November 3, the rupee gained 20 paisa in relation to dollar for buying and selling at Rs 60.70 and Rs 60.80, dealers said.
On November 4, the rupee gained 15 paisa in relation to dollar for buying and selling at Rs 60.55 and Rs 65, dealers said.
The local currency, however, lost 10 paisa versus euro for buying and selling at Rs 76.55 and Rs 76.85 as the single European currency held its present firmness versus the greenback, they added.
On November 5, the rupee managed to recover further five paisa versus dollar for buying and selling at Rs 60.50 and Rs 60.60, dealers said.
The local currency, however, lost its firmness versus euro, shedding 55 paisa for buying and selling at Rs 77.10 and Rs 77.40, moneychangers said.
On November 6, the rupee followed suit and gained 20 paisa for buying and selling at Rs 60.30 and Rs 60.40. The rupee gave up weakness versus euro, gaining 25 paisa for buying and selling at Rs 76.85 and Rs 77.15, dealers said.
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