KARACHI: The Pakistani rupee made a sharp recovery of Rs14 after plummeting to an all-time low of Rs299 against the US dollar a day earlier.
The local currency sharply retraced losses by gaining Rs14 against the US dollar to trade at Rs285 in the interbank market after falling to Rs299 against the US dollar in the last trading session.
The Pakistani rupee plummeted to an all-time low of Rs299 against the US dollar during Thursday’s trading in the interbank market as the cash-starved country struggles to arrange funds to make payments to international lenders amidst depleting foreign exchange reserves, which have become a source of consternation for investors.
The recovery came following two significant developments over the last few hours.
First, according to the market, the currency gained strength after the demand from imports relatively declined as oil payments were released a day earlier.
Secondly, the Supreme Court on Thursday declared Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan’s arrest illegal and ordered authorities to release him “immediately”.
Arif Habib Limited Head of Research Tahir Abbas said that the day earlier, when the Pakistani rupee touched the historic low of 300, the demand for the US dollar was more because imports had to retire their payments due; today, the market is relatively less.
He said, “Less demand coupled with an improved political situation has led to this sharp recovery.”
Abbas recalled that the local currency lost over Rs20 in the previous three days as the currency remained volatile since the uncertainties surrounding the IMF programme.
