“The free movement of the exchange rate has now favored local currency as its external account improves. The major cause behind the decline, however, was the sale of dollars on interbank markets by exporters, which further reduced the demand for greenbacks,” said Atif Ahmed, the interbank currency trader.
The Pakistan rupee exchange rate recovered from the US dollar on Thursday to the US 22 paisas in interbank trade and closed at the rate of Rs156.74 compared with the day before Rs156.96 was closed.
The dollar sales and purchasing rates were reported on the open market in Rs 156.8 and Rs 157.7, respectively, according to the Forex Association of Pakistan (FAP). Similarly, versus a final day’s Rs190,36 trading, the price of the euro has been decreased by Rs 3,06 and finished at Rs187,36, the state bank stated.
The Japanese Yen lost a paisa at Rs1.41, compared with its last closure of Rs221.41, a loss of Rs2.35 was observed in the exchange rate for British pounds, trading at Rs219.06.The Emirates Dirham and Saudi Riyal exchange rates were reduced by 06 paise to Rs42.66 and Rs41.79.
The traders stated that the Rupee gained, as remittances and export earnings flowed into the market. Due to the demand for import and corporate payment, it had a steady drop on June 11, 2021, and June 16, 2021. The demand for imports and corporate payments in June is often high because of the conclusion of the financial year. However, the rupee still received help from employees’ receipts and payment inflows. The State Bank’s monthly report indicated Rs95.317, which was marginally below 96.326 in Dec, for the January Real Effective Exchange Rates (REER). The REER represents the weighted average currency of the nation as regards the index or basket of other key currencies. The weights are derived by comparing a country’s currency’s relative trade balance with each country within the index. This exchange rate determines the financial worth of a single country compared with the other major currencies in the index.
