Rupee strengthens as dollar's slide continues

Published May 31, 2019
The dollar shed its value by Re1 in the open market to be traded at Rs148.50.  —  Reuters/File
The dollar shed its value by Re1 in the open market to be traded at Rs148.50. — Reuters/File

The rupee strengthened in the currency market on Friday as the value of the US dollar continued to slide in the interbank as well as the open market.

The greenback shed its value by Re0.35 in the interbank and was traded against Rs148.15. Similarly, the dollar shed its value by Re1 in the open market to be traded at Rs148.50.

According to currency dealers, the increasing inflows of remittance in connection with Eidul Fitr have supported the local rupee in the market. According to them, the majority of inflows came from Saudi Arabia and other Gulf countries, including the United Arab Emirates (UAE).

Take a look: SBP summons dealers as dollar touches Rs144

The increased remittances played a vital role in strengthening the value of the rupee and supply of dollar in the market.

Forex Association of Pakistan President Malik Bostan said that trading in the interbank generally affects trading in the open market. He also expressed his optimism that the greenback will further shed its value in the open market, if its value continues to slide in the interbank.

Bostan said he hopes that the State Bank of Pakistan (SBP) will continue to follow up on the strict measures it had introduced in the money market against the unnecessary purchase of dollars to discourage those illegal practices by banks and importers.

On Thursday, the value of the US dollar decreased by Rs1.70 in the interbank market. The greenback settled down at Rs 148.70 in the interbank market. The decline had also dictated the open market, forcing the dollar to shed its value by Re0.50 to Rs149.50.

On Wednesday, the value of the dollar established in the interbank market at Rs150.22 — down Rs0.78. It, however, remained stable at Rs150 in the open market.

On Tuesday, the US dollar had reached the Rs151 mark in the interbank market, with the rupee falling by Rs1.40, while in the open market, the rupee had slid to Rs150 against the dollar, down Rs0.50 as compared to the previous day.

On Monday, falling demand coupled with a surge in supply had pushed dollar's price in the open market to Rs149.50 — down half a rupee from the Rs150 rate in the preceding session. In the interbank market, the greenback had been traded at Rs149.60 as compared to Rs150.90 in the earlier session, posting a decline of Rs1.30.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.