Pakistan’s rupee rebounds sharply after dollar demand eases

Demand for dollars eased after the market faced extra pressure from external payments

Published: May 12, 2023 11:51 Bloomberg

Copy of 927525-01-02-1683877884339 — The South Asian nation faces delays in securing a loan from the International Monetary Fund amid an economic crisis. Image Credit: AFP

Islamabad: Pakistan’s rupee surged after touching an all-time low this week as dollar demand for imports eased.

The currency advanced 4.7 per cent to 285 per dollar in early trade on Friday, according to data from the foreign-exchange desk at Arif Habib.

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The demand for dollars eased after the market faced extra pressure from external payments, said Tahir Abbas, head of research at Karachi-based Arif Habib. Pakistan’s currency market is facing a dollar shortage since last year, with the nation’s reserves currently enough just enough to cover one month of imports.