The Pakistani rupee continued its recovery against the US Dollar in the interbank market today as it regained Rs. 1.32 against the greenback during the current week.
According to Capital Stake, the local currency has recovered Rs. 3.21 against the US Dollar in October. This is an improvement of Rs. 5.94/US$ from its 52 weeks low of Rs. 168.4353/US$.
The interbank market saw the rupee climb to 162.49 versus the greenback today. It gained 36 paisas during the session, whereas it had closed at 162.86 on Thursday.
The demand for the dollar remained lower due to fewer import payments as the supply of the greenback is good for now, exceeding the demand. Dealers are expecting that rupee will appreciate to 160/USD till the month-end.
Pakistan has received significant inflows in the form of remittances in the last couple of months. The measures taken by the State Bank of Pakistan (SBP) to encourage overseas Pakistanis to send money home through legal channels have started to show results.
At the same time, the demand for foreign currencies has fallen after the G20 deferred Pakistan’s debt payments. Moreover, G20 creditor countries further extended the debt suspension initiative for another six months.
The Pakistani Rupee has embraced a sudden wave of strength against the greenback since the 1st of October. The USD/PKR rate has consistently broken through support since the beginning of the month.
The Roshan Digital Account and Naya Pakistan Certificates have attracted inflows of dollars to Pakistan from various countries.
Over 21,000 Roshan Digital Accounts have been opened, and $24 million have been received through Roshan Digital Accounts in the first month since launch.