Rupee strengthens against dollar

According to the State Bank of Pakistan, in the interbank market, the value of the Pakistani rupee against the US dollar gaining 8 paisas increased by 0.05% to Rs152.94 against the last closing of Rs153.02— falling below a 22-month low level of Rs154.

Interbank closing #ExchangeRate for today:https://t.co/9Z1kdF9raq pic.twitter.com/731pfuLvNA

— SBP (@StateBank_Pak) April 9, 2021

Forex dealers said that in the interbank US dollar also fell by 17 paisas, after which the dollar closed at Rs152.85.

During the current financial year, the exchange rate fluctuated sharply and in August 2020 (FY 21), the rupee depreciated to its lowest level against the dollar, reaching Rs168.70 on August 20 last year.

The rupee then began to recover and has improved significantly against the US dollar over the past four months.

The government's efforts have begun to bear fruit, with the country's economy improving and the current account deficit narrowing, the rupee strengthening against the dollar has pushed the US dollar back to a 22-month low.

Forex dealers said the continuous depreciation of the US dollar despite the coronavirus epidemic is a signal of the country's improving economy and reducing the current account deficit.

At the same time, economists attribute the strengthening of the Pakistani rupee to an increase of $2.5 billion in the country's foreign exchange reserves.

It is to be noted that Pakistan received $2.5 billion in Eurobonds after which the country's foreign exchange reserves reached a three-year high point.

According to economists, with the increase in remittances and exports, the rupee has appreciated against the dollar in Roshan Digital Accounts.

Earlier, the SBP governor told the Prime Minister that remittances through Roshan Digital Account could cross the $80 million level.

It is important to mention that the Pakistani Rupee appreciates when a lesser amount of rupees is required to get one USD whereas PKR depreciates when more rupees are required to get one greenback.