Rupee makes gains against US dollar in interbank market

KARACHI: A day after the Pakistani rupee took a hit against the US dollar, the local currency gained ground on Friday over an improved supply for the greenback. 

The local unit appreciated by Rs2.80 against the dollar in the interbank market during intraday trade and was seen trading at Rs280 at around 11:05am. 

A day earlier, the rupee depreciated by Rs3.18 against the dollar and closed at Rs282.30 due to further delay in the revival of the loan agreement with the International Monetary Fund (IMF).

General Secretary Exchange Companies Association of Pakistan (ECAP) Zafar Paracha told The News that the dollar supply has increased which has led to the matching demand and supply.

“The import demand is not much today, however, the remittances and export proceeds have increased and people are encashing their payments which is a positive trend,” he added.

He said that the dollar will not increase on Monday in the coming week if the situation persists, however, there is some pressure as the week starts.

Paracha was hopeful of positive sentiment in the market as the State Bank of Pakistan (SBP)-held foreign exchange reserves rose above the $4 billion mark after the cash-strapped nation received a $500 million loan from a Chinese bank.