The rupee continued to regain stability against the US dollar, with the exchange rate standing at Rs. 165.62 on September 01.
The local currency has improved its value by Rs. 2 and 80 paisas against the greenback since last Thursday. According to an estimate, the strengthening of the Rupee against the Dollar will give relief of over Rs. 300 billion on debt to the national exchequer.
Various reasons caused the stability of the rupee in the last few days which is likely to maintain its position in the next few days as well.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities while commenting on the Rupee said,
I was of the opinion that there would be no depreciation imminently. This appreciation of Pak Rupee instills confidence, restores optimism, and tightens the government’s grip on the macro side. It’s led by an improving trade deficit, remittances, and no tourism-related outflows.
Yaqoob Abubakar, an analyst at Tresmark, an application that tracks financial markets, told ProPakistani that the Rupee appreciated after China allowed Pakistan to use its $1 billion deposited in the central bank for budgetary support. Last week, Beijing provided $1 billion for deposit in the State Bank of Pakistan to bridge the financing needs when Saudi Arabia had withdrawn its money.
Malik Bostan, President Exchange Companies of Pakistan, told ProPakistani that the Rupee regained its value as the export receipts saw a record $150 million inflow in the past three days whereas the imports and its related payment cycle have slowed down due to heavy rains in different parts of the country.
The remittances are witnessing a steady growth in the country mainly from the contribution of overseas workers and the receipts earned by local freelancers of various services.
The dollar also saw pressure in the global market as its value slipped by 12% against the Pound and 10% against the Euro. COVID-19 has taken a toll on the economy of the country, which also dented the value of the Dollar against various currencies, he added.