KARACHI: The Pakistani rupee rose sharply against the US dollar in the interbank market on Wednesday, reaching 172.78 against the greenback.
The development follows Saudi Arabia’s announcement that it is depositing 3 3 billion in the State Bank of Pakistan (SBP) to support its foreign reserves.
According to data released by the central bank, the local currency rose about 1.44% (or Rs 2.49) in the interbank market to close at Rs 172.78. The local currency closed at an all-time low of Rs 175.27 against the greenback on Tuesday.
As of late Tuesday, the Saudi Fund for Development said it was depositing 3 3 billion in the State Bank of Pakistan (SBP) to support its foreign reserves.
The fund added that a formal directive was issued during the year to provide 1. 1.2 billion for trade in Pakistan’s oil products.
The news was acknowledged by all financial markets as it had a positive effect on foreign exchange reserves.
In addition, Federal Minister for Energy Hamad Azhar confirmed that the Saudi Fund has announced a تیل 1.2 billion annual deferred oil facility for Pakistan.
Analysts believe that this will reduce the uncertainty caused by the energy crisis and expensive oil imports, which is a major reason for the currency’s depreciation.
The rupee had maintained a bearish trend for the past five months. It is down 13.46 per cent (or Rs 20.51) to date from a 22-month high of Rs 152.27 recorded in May.
The local currency has depreciated by 9.67% (or Rs. 15.24) since the beginning of the current financial year on July 1, 2021, according to data released by the Central Bank.