KARACHI : August 12. 2022. The rupee made handsome gain and pegged at 215.50 at closing of the currency market on Friday.
According to forex association , US dollar traded at Rs 215.50 in the interbank value. Its open market value also shrunk against the local unit to take it down to Rs 212 to a dollar at closing of the open currency market on Friday.
The US currency is showing declining trend for the last one week. The rupee had hit hard last month when its value receded down to 239 in interbank trade and it touched a lowest ever level of Rs 249 in the open market .
The quick depreciation of local currency had created a panic like situation in the currency market bringing a bloodbath in stock market where investors suffered huge losses.
Then State Bank of Pakistan (SBP) moved in to rescue the rupee and help its free fall. Its injection of money in the market and issuing a warning to the forex companies which were involved in hoarding of US currency led to appreciation of the rupee in the open market as well as interbank trade. Since start of August, the local currency has appreciated by 24 rupee against US currency .
Now with the issuance of letter of intent (LoI) to the government of Pakistan by International Monetary Fund (IMF) has set a stage for big appreciation of the local currency in coming days.
Malik Bostan Khan, chairman forex association of Pakistan, is optimistic that the rupee is going to gain more value once IMF approve release of much needed tranche of $ 1.2 billion.
He told NEWSMAN the other day that the rupee actual value vis- a- vis dolar is around 180 and the local currency is going to gain this level very soon.
Malik Bostan Khan also appreciates the government policy of checking unnecessary imports to release pressure on the local currency and its continuity will be helpful in appreciation of the rupee value in coming days.