Rupee-drops-to-two-week-low-at-Rs172.93-gold-rises-The-Correspondent

The Pakistani rupee continued to gain ground against the US dollar on Thursday — the 10th consecutive session — and appreciated by 2.19 in the interbank market at the start of the intraday trade.

The greenback was being traded at Rs221.75 after losing 2.19 as the market opened today. It closed at 223.94 per dollar a day prior.

The market observers are of the view that the dollar declined on hopes of inflows, upbeat trade data, and bets that the new finance minister would be able to tame the US currency effectively.

“In my view, recent encouraging trade balance data, hopes from multilateral institutions of additional inflows supported the rupee,” said Samiullah Tariq, the head of research at Pak-Kuwait Investment Company.

“The 215-220 per dollar seems a good level,” he added.

Finance Minister Ishaq Dar’s statement “the actual value of the rupee was less than 200 and it would be brought down, as it was currently undervalued” further bolstered the currency as the dollar sales by the exporters continued to underpin sentiment and improve supplies in the market.

Meanwhile, the State Bank of Pakistan (SBP) governor informed the National Assembly’s Standing Committee on Finance that action would be taken against banks and forex exchange companies involved in creating volatility in the exchange rate upon the finalisation of the inquiry.

The committee wanted to know the names of the eight banks that were allegedly involved in speculation for making money and there was a considerable difference in dollar rate in the interbank and exchange companies’ rate.

The committee directed the SBP to take appropriate action against all the banks and exchange companies allegedly firing up exchange rate volatility.

The committee also asked the SBP to take exemplary action against banks and exchange companies involved in speculations to make a profit so that no one could dare to play with the economy of the country in the future.

The story was filed by the News Desk. The Desk can be reached at info@thecorrespondent.com.pk.

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