Rupee posts sharp recovery on improved political situation

The Pakistani rupee recovered sharply on Friday to rise on improved political situation and a decrease in demand from the importers after falling to an all-time low of Rs300 a day earlier.

The local unit sharply retraced losses by gaining Rs12.43 per US dollar to trade at 286.50 in interbank market, after falling to 300 in the last trading session.

The recovery came following two major developments that took place over the last few hours.

First, according to market talk, the currency gained strength after the demand from imports relatively declined as oil payments were released a day earlier.

Secondly, the Supreme Court on Thursday declared Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan’s arrest illegal and ordered authorities to release him “immediately”.

Arif Habib Limited Head of Research Tahir Abbas said that a day earlier, when the rupee touched historic low of 300, the demand for the US dollar was more because imports had to retire their payments due; however, today the demand is relatively less.