Rupee appreciates slightly against US dollar

• Local currency closes the week at Rs171.18 on Friday with a gain of 0.01%.
• Imran Khan says that the pressure on the Pakistani rupee is temporary and will be over soon.
• In line with the prediction, the currency traded between a range of Rs170-171 during the week.

KARACHI: The rupee appreciated slightly against the US dollar in the inter-bank market on Friday, closing the day at Rs171.18.

The local currency closed at an all-time low of Rs171.18 on Thursday as demand for the foreign currency stood higher compared to its supply.

Earlier today, speaking at the launch of the Kisan Portal, Prime Minister Imran Khan had said that the pressure on the Pakistani rupee is temporary and will be over soon.

With a fresh increase of 0.01%, the rupee has depreciated 8.65% (or Rs13.64) since the start of the current fiscal year on July 1, 2021, data released by the State Bank of Pakistan (SBP) revealed.

According to data of the central bank, it has cumulatively dropped 12.41% (or Rs18.91) since its recent high of Rs152.27 against the greenback recorded on May 14, 2021.

The analysts had earlier predicted that the downtrend is expected to end soon as analysts suggest that the successful conclusion of the discussion between the IMF and Pakistan to resume a $6 billion loan programme will stabilise the rupee value at around current levels.

“The rupee volatility will end if policy talks between Pakistan and the IMF conclude successfully during the three days from October 13 to 15,” Pakistan-Kuwait Investment Company Head of Research, Samiullah Tariq, had told Geo.tv.

In line with the prediction, the currency traded between a range of Rs170-171 during the week.

It is pertinent to mention here that the central bank has opted for a flexible exchange rate to let market forces decide the per dollar value of the rupee keeping in view the demand and supply of the foreign currency.

However, in case the two sides fail to find a middle ground and talks end on an unsuccessful note, the rupee may cross several limits on the downside.

The analysts had also mentioned that the steps taken by the government and the central bank to reduce pressure on the rupee would start bearing fruit from November or December.