The rupee strengthened against the US dollar at Rs198.46 in the inter-bank market on Tuesday compared with Monday’s close of Rs199.06, according to the State Bank of Pakistan (SBP). On May 26, 2022, the rupee closed at an all-time low at Rs202.01 owing to the delay in resumption of IMF loan programme. The continuous increase in international oil prices also proved to be a negative development for the rupee, as the country heavily relied on imported fuels to meet domestic demand. The rupee had been on the downtrend since hitting 22-month high at Rs152.27 in May 2021. Experts said that the recovery in the rupee came following increase in the supply of foreign currency in the market. Exporters apparently sold the foreign currency on expectations of further recovery of the rupee.
Published in The Express Tribune, June 1st, 2022.
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