KARACHI: Rupee made a modest recovery against dollar in interbank market after Finance Ministry and State Bank of Pakistan (SBP) gave a roadmap for ongoing fiscal year to overcome economic crisis facing country.

Rupee registered a minor gain of 0.53 paisas or 0.22 percent and reached 238.84, up from 239.37 in last trading session. Meanwhile, it closed at 246 in open market.

Domestic unit which is currently ranked among worst performing currencies globally took a battering in July in interbank and open markets. In last four months, rupee has depreciated by about Rs 60.

SBP and finance ministry said that rupee has been overshot temporarily, but it is expected to appreciate in line with fundamentals over next few months.

Around half of rupee depreciation, since December 2021 can be attributed to global surge in dollar, following historic tightening by Federal Reserve and heightened risk aversion.

“This uncertainty is being resolved, such that sentiment-driven part of rupee depreciation will also unwind over coming period,” statement said.

Published in The Daily National Courier, August, 02 2022

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