The rupee strengthened against the US dollar at Rs186.05 in the inter-bank market on Monday compared with Saturday’s close of Rs186.75, according to the State Bank of Pakistan (SBP). On April 7, 2022, the rupee closed at an all-time low at Rs188.18 owing to speculation stemming from political turbulence in the country. Moreover, demand for the dollar stood higher compared to its supply in the wake of an expanding current account deficit, swelling imports and rising global commodity prices. Earlier, the announcement of $3 billion cash deposit by Saudi Arabia in the State Bank helped the rupee to appreciate, however, the recovery proved short-lived.
Published in The Express Tribune, April 26th, 2022.