The Pakistani currency appeared to be resuming its thrashing of the US dollar, as the rupee opened the business on Thursday on solid footing, sending the greenback crashing to below Rs200.
Following a three-day thrashing at the hands of the US dollar, the rupee showed some courage on Wednesday and now on Thursday, scoring a healthy gain of Rs2.02, pushing the dollar down to the Rs200 barrier, which was now trading at Rs199.50.
Forex traders were cautious as the rupee began the day strongly but later settled for a much smaller gain against the US dollar.
The US dollar closed the day at Rs201.52, down Rs1.31.
The rupee’s recovery is attributed to the government’s tightening monetary policy, which has banned 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 the other day, 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.
