Rupee makes unbelievable recovery against dollar of Rs9.58

KARACHI: The US dollar closed at Rs228.38 — Rs9.58 lower — in the interbank on Wednesday as the local currency made an unbelievable recovery in both interbank and open bank markets on the back of promising import data. For the open market, forex associations issued two different rates with one reporting that the rupee gained as much as Rs13.5 in a single day.

Forex Association of Pakistan, head by Malik Bostan, reported that the US dollar closed at Rs226 in the open market while Exchange Companies Association, led by Zafar Paracha put the exchange rate at Rs29.50 on Wednesday.

It is a rarity that two exchange rates with a remarkable difference have been reported, says SAMAA Money’s Wakilur Rehman adding that usually the different is lower than 50 paisa.

The rupee built on its recent momentum of gains against the US dollar during intraday trading on Wednesday and at around 12:50 pm, it was traded for Rs228. By 30pm the US dollar fell to Rs225.

However, in the interbank, the greenback appreciated a little by the end of the trading session closing at Rs228.39 or 4.19% lower, according to the data issued by the State Bank of Pakistan.

On Tuesday, the rupee had improved to Rs238.38, an appreciation of 0.19% over the previous day when it had closed at Rs238.84.

The primary reason for the sudden resurgence was promising import data of the country which had declined, showing that economic measures taken by the government to control the growing current account deficit were bearing fruit.