Rupee recovers against US dollar

KARACHI: The rupee ended stronger on Tuesday, recovering from an all-time low hit in the previous session.

Pakistan’s currency showed recovery after the State Bank of Pakistan (SBP) signed an agreement with the Saudi Fund for Development (SFD) to get $3 billion that aimed to shore up its foreign exchange reserves.

In the interbank market, the rupee closed at 175.72 per dollar, compared with Monday’s close of 176.20, appreciating by 0.27 percent during the session.

The local currency ended at 177.70 against the dollar. It finished at 177.80 in the previous session.

“Today [Tuesday], there was not much of demand for the greenback as importers covered their payments, while exporters sold dollars in anticipation of appreciation in the currency in the days ahead,” said a currency dealer.

He was hopeful that the expected $3 billion deposits from Saudi Arabia would help improve the forex reserves as well as ease pressure on the rupee. Pakistan’s forex reserves are set to rise to $25.77 billion, while reserves of the SBP to increase to $19.25 billion after the SFD places deposit with the SBP.