Rupee appreciates around 0.27% against US dollar

• The local currency gained 48 paisas against the greenback, settling at Rs175.72 in the interbank market.
• Rupee has depreciated by 11.53% (or Rs18.18) since the start of the July 1, 2021.
• Tahir Abbas notes that during the week, the currency is expected to trade within a range of Rs175-176 against the greenback.

KARACHI: Following the news regarding the Saudi package, the rupee slightly appreciated against the US dollar in the inter-bank market on Tuesday.

The local currency gained 48 paisas against the greenback, settling at Rs175.72.

A day earlier, the local unit plunged to an all-time low of Rs176.20 against the US currency on the back of high import payments and the country’s dwindling foreign currency reserves.

However, the news that the State Bank of Pakistan (SBP) and Saudi Fund for Development (SFD) have signed a deposit agreement for the much-awaited funds worth $3 billion eased the pressure from the currency.

The rupee has maintained the downtrend for the past six months. It has lost 15.4% (or Rs23.45) to date, compared to the 22-month high of Rs152.27 recorded on May 14.

With a fresh increase of 0.27%, the rupee has depreciated by 11.53% (or Rs18.18) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Earlier, speaking to Geo.tv, Arif Habib Limited's Head of Research Tahir Abbas had predicted that the current account deficit for the month of November is expected to clock in at around $1.5 billion with imports to "stay at historic high levels."

Abbas had noted that during the week the currency is expected to trade within a range of Rs175-176 against the greenback.