KARACHI: Pakistani rupee strengthened against the US dollar on Thursday by 0.49 percent and improved to 285.74.
The State Bank of Pakistan said in a tweet that the dollar opened at Rs287.13 in the interbank market and closed at Rs285.74, with a minor gain of Rs1.39. In the open market, the rupee was traded at 306-310 a dollar against 308-310 per dollar a session earlier.
During the current fiscal year 2022-23, Pakistani rupee has lost Rs79.87 against the US dollar in the interbank, while it plummeted by Rs59.31 against the greenback in the current year.
Finance Minister Ishaq Dar on Wednesday reiterated that there is absolutely no risk of default. The finance minister assured the business community that the existing compliant taxpayers would not be further squeezed in the upcoming budget for the financial year 2023-24 and the focus of the budget would be on broadening the tax base and documenting new taxpayers. Dar also assured tax relief measures such as incentives to the poultry sector to bring the commodity prices down in the coming days.
Globally, the US dollar pushed to a two-month high against the euro and a six-month peak versus the yen on Thursday, as a resilient US economy led traders to pare their bets on rate cuts this year. The US dollar index, which measures the currency against six major peers including the euro and yen, touched a two-month high of 104.01.
Factors such as the persistent delays in the revival of the International Monetary Fund (IMF) loan programme, a continuous drop in foreign exchange reserves, increasing chances of default on foreign debt repayment, and political instability in the country are contributing to the mounting pressure on the rupee against the US dollar. – TLTP