KARACHI. Dec 15, 2022: The rupee showed slight recovery against US dollar. US currency rate deprecated against by 20 paisa against the rupee in interbank during mid- day session on Thursday. With slight adjustment , US currency pegged at Rs 224.55 against its last day rate of Rs 224.75.
In open market , US currency did not show any change and it remained stable at Rs 231.70. In open market , US currency is mostly stable. Other major currencies particularly Euro and Pound Sterling were on the gaining spree. However these two remained stable at the last day rates of Rs 254.40 and Rs 296 respectively.
Saudi Riyal also made no significant change in its value in the mid day session on Thursday and it remained stable at Rs 64. Likewise, UAE dirham also did not show any change in its value and it remained stable at its last day rate of Rs 55.
The rupee is struggling in domestic currency market and finding it hard to fight out other major currencies . Uncertainty and decreasing forex reserves are two main causes of downward trend in the local unit value. Pakistan’s forex reserves have fallen to a dangerous level of $ 6.7 billion. With such a meager forex reserves, local units can not perform positively in the domestic currency market .
Although the government is trying to get funds from friendly countries and at the same time trying to hold International Monitory Fund (IMF) bailout package, but still things are not clear if Pakistan will get desired funds to build up its forex reserves or not.
As long as Pakistan’s forex reserves remain low, the local currency will remain under pressure in the local currency market.