Dar's meetings prove fruitful as rupee recovers against dollar

• Rupee gainsRs1.59 against dollar.
• Local currency closes at 220.88 against greenback.
• Analyst believes finance minister's meeting with SBP officials improved market sentiments.

KARACHI: Finance Minister Ishaq Dar's meetings with the officials of the State Bank of Pakistan (SBP) and currency dealers proved fruitful as the Pakistani rupee opened the week strongly in the interbank market on Monday.

According to the State Bank of Pakistan (SBP), the local unit gained Rs1.59 or 0.72% against the greenback in the interbank market, closing at 220.88.

Last week, the rupee lost 0.93% to 222.47 against the dollar. Analysts believed that the local currency would trade range-bound this week.

Speaking to Geo.tv, Pakistan-Kuwait Head of Research Samiullah Tariq said that the meetings of the finance minister with the State Bank of Pakistan's (SBP) officials and marketparticipants including banks and exchange companies have improved the market confidence.

Meanwhile, Finance Minister Ishaq Dar warned last week that tough actions will be taken against those found manipulating the exchange rate.

Dar stated that the rupee’s actual value is below the 200 level against the dollar.

He issued a warning to those engaged in currency speculation and hoarding, predicting that the rupee will soon appreciate against the dollar.

“Where the rupee is at the present is not the right place. The rupee should trade between 180 and 200 to the dollar in the currency market,” he said.