KARACHI: The Pakistani rupee appreciated against the U.S. dollar by 5 paisa and hit Rs155.70 in the open market during early trade hours on Monday.
Likewise, in the interbank market, the local currency traded at Rs155.66 per dollar.
In the previous week, the rupee gained its strength by 23 paisa against the greenback in the interbank and closed at Rs155.65 on Friday. In the open market, it recovered by 25 paisa and closed at Rs155.75 with slight fluctuation in the whole week.
Earlier, the World Bank Group had forecasted Pakistan’s economic growth to slow down for the next two years as it continues to face another macroeconomic crisis due to massive twin deficits and low foreign reserves.
Despite significant devaluation, the WB still sees the rupee overvalued by the end of September by approximately 4.8%.
In the last three months, the local currency was observed to significantly recover against the greenback in both interbank and open markets.
Analysts had expressed fear that the intense ongoing trade war between the United States and China would result in fluctuation of the U.S. dollar in the local market, and the value of the Pakistani rupee would stabilise depending on the measures taken by the government with appropriate economic policies.
Currency traders were of the view that the increasing inflows of remittance have supported the local rupee in the market.
Until June this year, the rupee was observed to cumulatively depreciate against the greenback, which in turn, had resulted in increased prices of goods and hardships for the general public.
The SBP has let the rupee depreciate significantly in the inter-bank market after finalising an agreement with the International Monetary Fund (IMF) for a loan programme on May 12.
The IMF asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar.
