US dollar drops against Pakistani rupee

According to the data released by the State Bank of Pakistan, the dollar has depreciated by 4 paisas and closed at Rs153.88 in the interbank market against Rs154.50 recorded the earlier day.

Interbank closing #ExchangeRate for today:https://t.co/GMjmhrHymv pic.twitter.com/8arykboxiD

— SBP (@StateBank_Pak) April 28, 2021

“Inflows from Pakistani workers employed abroad and export receipts helped the rupee make slight gains, despite the demand for import and corporate payments,” a foreign exchange dealer said.

The rupee has gained value against the dollar in recent days on the back of Roshan Digital Account inflows, resumption of the International Monetary Fund’s loan programme, and robust forward sale of dollars by exporters.

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 supply and demand position of dollars and the upcoming data on the country’s forex reserves will determine the future direction of the rupee. The rupee should conclude this week at Rs153.3 - 154.5 per dollar,” said a currency exchange dealer.

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.