Pakistani rupee gains Rs2 to close at Rs221.94

On Thursday, the Pakistani rupee (PKR) strengthened by Rs2 or 0.90 per cent against the dollar to close at Rs221.94.

According to the Forex Association of Pakistan (FPA), the local currency was trading at Rs221.75 per $1 at 9:46 am, up 0.98 per cent from yesterday’s close of Rs223.94.

The rupee has been strengthening since September 22, when it nearly hit an all-time low of Rs239.71. In the last nine sessions, it has increased by Rs15.77 or 6.58 per cent.

The State Bank of Pakistan’s (SBP) and finance ministry’s joint investigation into banks making obscene profits from their dollar sales, according to Mettis Global Director Saad bin Naseer, has calmed the interbank market.

SBP On Tuesday, Governor Jameel Ahmad told a National Assembly committee that eight banks were under investigation for the initial round of currency rate manipulation. In the following stage, the other banks would be looked into.

He said that a smaller trade deficit in September and the Asian Development Bank’s (ADB) pledge of approximately $2.3–2.5 billion in aid were the key reasons for the rupee’s recovery on the open market.

FAP Chairman Malik Bostan listed the ADB announcement and hopes of a sustained drop in imports as the factors that contributed to the rupee’s rise.