Rupee appreciates against US dollar

• Rupee value slightly improves by Rs0.44, settling at Rs175.29 against the US dollar in the inter-bank market.
• The uptrend in remittances and exports jointly lent support to the local currency today.
• According to Shaukat Tarin, the real value of the dollar "should be Rs166-167" and Rs8-9 are being lost to speculation.

KARACHI: The rupee value slightly improved by Rs0.44 on Friday, settling at Rs175.29 against the US dollar in the inter-bank market.

According to the State Bank of Pakistan (SBP), the local currency had closed at an all-time low of Rs175.73 against the greenback on Friday.

The uptrend in remittances and exports jointly lent support to the local currency today, however, rising global commodity prices and uncertainty about the resumption of the IMF loan programme limited recovery.

Last week, the local currency had lost around Rs5.76 because of the ambiguity about the completion of the IMF review of the $6 billion Extended Fund Facility (EFF).

The rise of the dollar against other global currencies, given record inflation and speculative and panic buying from importers, weighed on the domestic currency.

The market is also waiting for the disbursement of the Saudi cash deposits to Pakistan under the pledged financial assistance announced in the last week of October.

Traders, however, predict that the Pakistani currency is likely to face continued pressure against the dollar. In terms of rupee direction, traders believe the central bank may not currently intervene as it’s like throwing good money after bad money.

On Sunday, Adviser to the Prime Minister on Finance Shaukat Tarin touched upon the rapid decline of rupee witnessed over the past few months, saying that speculation (Satta) had a hand in it.

According to Tarin, the real value of the dollar "should be Rs166-167" and Rs8-9 are being lost to speculation.

He had vowed that the government will tighten the noose around bookies.