Pakistani rupee sees sharp growth against US dollar

Written by PTI | Islamabad | Updated: Mar 12 2014, 20:43pm hrs
USCurrently, the interbank trading rate of the Pakistani rupee is 97.30 per US dollar. PTI
Pakistani Finance Minister Ishaq Dar today said the rupee will strengthen further as it continued to appreciate against the US dollar in the open currency market as well as in interbank trading, taking everyone by surprise.

Currently, the interbank trading rate of the Pakistani rupee is 97.30 per US dollar. Last week, it was trading at about 105.

On Tuesday, it gained about 1.10, which led to the dollar selling at 99.

95 in the interbank rates and at 100 rupee in the open money market. It was the first time in seven months that it had touched 100 per dollar mark in interbank trading.

In an interview, Dar said all out efforts are being made to stabilise the Pakistani currency.

He said national economy is showing upward trend and the rupee will strengthen further.

Dar also said that inflation is moving down and foreign reserves increasing.

To a query Dar said international markets are reposing confidence in the markets of Pakistan and showing keen interest in different sectors.

Dealers and market analysts say positive sentiments have helped the Pakistani rupee make big gains against the dollar in the foreign exchange market after it had slipped to as low as 111 last November.

On Monday, the Pakistani rupee had ended higher at 101.00/101.10 against the dollar as compared to Friday's close of 102.85/102.95.

Several measures by the government including ban on import of gold, and higher investment inflows have helped strengthen the rupee, according to state-run Radio Pakistan.

As per the State Bank of Pakistan the country received foreign direct investment of USD 523 million in the first seven months of current fiscal year with USD 106.9 million in the month of January alone.

In addition the expected receipt of USD 550 million from the International Monetary fund along with the proposed launch of Eurobonds next month has also led to positivity in the foreign exchange market.