US Dollar continues to lose streak against PKR, trades at Rs229 in the interbank market

US Dollar continues to lose streak against PKR, trades at Rs229 in the interbank market on Wednesday.

The day marks the first major recovery of the local currency from Rs7.40 (or 3.10%) to a one-week high of Rs230.98 against the greenback.

According to the Forex Association of Pakistan (FAP), the Pakistani Rupee gained 88 paise by 9:50 am to reach Rs237.5 compared to yesterday’s close of Rs238.38.

According to Mettis Global, a web-based financial data and analytics portal, today’s remarkable recovery is “primarily attributed to the improved economic fundamentals as the import bill in July 2022 has been reduced to $4.86 billion, down by 38.31 percent, compared to $7.88bn in the previous month”.

Pakistan’s trade deficit is reported to have reduced by almost half to $2.64 billion in July compared to $4.96 billion in June.

As reported, a significant reduction in the trade deficit has been achieved on the back of a cut in imports, resulting in less demand for the greenback in the local market.

According to the financial experts, the rupee’s recovery was due to a sharp drop in import payments after all letters of credit for oil in July were cleared and exporters rushed to close their open positions.