Rupee's upsurge against dollar continues

• Local currency settles at Rs170.54 against the US dollar in the inter-bank market.
• The currency has gained around Rs4.72 against the greenback during the last five sessions.
• Analysts believe the trends suggest that the rupee is likely to strengthen further over the ongoing week.

KARACHI: The upsurge of the rupee against the US dollar continued on Tuesday with the local currency gaining 75 paisas compared to the previous close on the back of an improved supply of hard currency and positive investor sentiments.

With a fresh increase of 0.44%, the Pakistani rupee settled at Rs170.54 against the greenback in the inter-bank market on Tuesday.

The rupee saw a recovery on the back of clarity on the International Monetary Fund (IMF) programme. Moreover, the Saudi Fund for Development had deposited $3 billion in the State Bank of Pakistan (SBP) to help support its foreign reserves, which reversed the downtrend.

Since then, the currency has gained around Rs4.72 against the greenback during the last five sessions.

Currency dealers say that some inflows are in the pipeline but are enough to influence the currency market sentiment and will keep the rupee on the higher side in the coming weeks.

Analysts believe the trends suggest that the rupee is likely to strengthen further over the ongoing week because of improved inflows as the revival of the IMF Extended Fund Facility could boost sentiments and compel exporters to go for the forward sale of dollars.

On October 26, 2021, Pakistani currency closed at an all-time low of Rs175.27 as demand for the foreign currency stood higher compared to its supply in the wake of an increase in import payments, rising global commodity prices and uncertainty about the resumption of the IMF loan programme.

The depreciation of the rupee stoked inflationary pressures and the government had raised electricity and fuel prices.