Rupee breaks losing streak, gains 0.56% against the US dollar
- Closes at 168.18 in inter-bank market
The Pakistani rupee broke a five-day losing streak on Thursday, gaining 0.56% against the US dollar in the inter-bank market, an increase that comes after the currency registered fresh lows in the past two days.
The rupee closed at 168.18, an appreciation of 0.56% or 94 paisas, on Thursday, said the State Bank of Pakistan (SBP).
Rupee closes at 169.12 as the fall continues
The rupee has been under immense pressure in recent weeks with a widening current account deficit and high import bill taking toll on the currency.
PKR at record low due to flight of dollars to Afghanistan
Some currency dealers believe the situation in Afghanistan is also to blame as it has resulted in outflow of dollars to the neighbouring country, where the banking system has been in disarray since US and allied troops withdrew and the Taliban took over.
While that may be a reason, it only partially explains the pressure on the currency that lost over 10% since May 2021. The situation in Afghanistan became volatile in the wake of the Taliban takeover in mid-August.
The SBP earlier indicated that the dollar could appreciate during the current financial year due to an expected higher current account deficit, reported Reuters on Wednesday.
Pakistan's rupee closes at its lowest level against the US dollar as pressure remains
"The rupee may consolidate around this level," Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company (Private) Limited, told Business Recorder.
"We will have to wait and see the upcoming Balance of Payments figures, and the trade numbers for September."
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