Rupee recovers 20 paisa against dollar in open market
KARACHI – The Pakistani rupee on Tuesday gained its strength by 20 paisa and hit Rs155.90 against the US dollar in the open market.
In the interbank market, the exchange rate of US dollar against rupee witnessed slight increase of 10 paisa and was traded at Rs155.78.
Earlier, the World Bank forecasted Pakistan’s economic growth to slow down for the next two years as it faces yet another macroeconomic crisis due to massive twin deficits and low foreign reserves.
Despite significant devaluation, the WB still sees the rupee overvalued by the end of September by approximately 4.8%.
In the last two months, the local currency was observed to significantly recover against the greenback in both interbank and open markets.
Earlier, analysts had expressed fear that the intense ongoing trade war between the United States and China would result in fluctuation of the U.S. dollar in the local market, and the value of the Pakistani rupee would stabilise depending on the measures taken by the government with appropriate economic policies.
Currency traders were of the view that the increasing inflows of remittance have supported the local rupee in the market.