Rupee reverses downward slide, gains 0.07% against US dollar

• Rupee closes at Rs178.51 against greenback in interbank market.
• Recovery comes after oil prices stabilise in international market.
• Local currency dropped to an all-time low of Rs178.63 on March 9.

KARACHI: The rupee recovered partially around 0.07% against the US dollar in the inter-bank market on Friday.

According to the State Bank of Pakistan (SBP), the local currency closed at Rs178.51 against the greenback, recording a gain of 0.07%.

The local currency dropped to an all-time low of Rs178.63 on March 9.

The currency remained under pressure in the last few days due to geopolitical tensions and rising oil prices. 

However, the recovery came after oil prices stabilised on Friday and were on track for their biggest weekly drop since November, after see-sawing on fears of escalating bans on Russian oil versus efforts to bring more supply to market from other major producers.

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At the same time, remittances crossed the $20-billion mark during the first eight months of the ongoing fiscal year, according to SBP data released on Thursday, with the market now keenly awaiting the current account figures.

The rupee had maintained a downward trend for the past 10 months. It has lost 17.23% (or Rs26.24) to date, compared to the record high of Rs152.27 recorded in May 2021.

The Pakistani rupee has depreciated by 13.31% (or Rs20.97) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Meanwhile, the foreign exchange reserves held by the central bank decreased 1.52% on a weekly basis.

On March 4, the foreign currency reserves held by the SBP were recorded at $16,212.2 million, down $250 million compared with $16,462.3 million on February 25.

According to the central bank, the decrease came due to external debt and other payments.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $22,668.7 million. Net reserves held by banks amounted to $6,456.5 million.