After taking a beating from the US dollar over the last three days, the rupee has shown some bravery by gaining Rs2.33 in value and bringing down the greenback, which was on a no-holds-barred upward trajectory.
According to forex traders, the rupee fared better during morning trading activity on Wednesday, with a solid appreciation in its value, lowering the exchange rate of the US dollar to Rs200.50. According to them, the American currency lost Rs2.33 in interbank trading.
Yesterday, the US dollar sprinted to a new high after crushing the local currency, gaining Rs2.77 to reach a new high of Rs202.83.
The recovery is attributed to the government’s tightening monetary policy, which has prohibited all imports except essential items and raw materials in order to reduce the balance of payments.
Finance Minister Miftah Ismail expressed the government’s determination to further tighten the belt during a press conference yesterday, hinting at raising the POL price once more.
The main demand of the International Monetary Fund, which will restart its loan programme if Pakistan accepts its terms, is the withdrawal of all types of subsidies on petroleum products and electricity tariffs.
