KARACHI, Dec 23: The rupee has recovered 18 paisa or 0.3 per cent value against the US dollar so far during this week on improved inflow of exporters' earnings and workers' remittances or foreign exchange sent home by overseas Pakistanis.
The rupee closed at 59.50 in the inter-bank market on Thursday, up from Rs59.68 at the end of last week, thus showing a gain of 18 paisa within four days.
The rupee that lost 5.5 per cent of its value against the US currency in July-October due to an unusually big trade deficit of $1.432 billion, gained 2.7 per cent value last month despite the fact that the deficit jumped to $2.511 billion in five months to November.
The local currency recovered as the State Bank started selling dollars to banks for financing oil import bills. In November alone it sold $407 million for this purpose. The central bank also took some steps to stop speculation in the inter-bank market.
The central bank still continues to sell dollars to banks for oil imports. That is why the rupee has gained further grounds this month. At the end of November it was trading at 59.70 a dollar but on Thursday it closed at 59.50, showing a gain of 20 paisa or more than 0.3 per cent so far during this month.
Senior bankers say that the rupee may rise further as exporters have stopped holding export dollars in the hope of getting better exchange rates and overseas Pakistanis are sending more of foreign exchange home ahead of Eidul Azha.
But the depreciation in the rupee value has started hurting exporters. "The gradual fall in the dollar value is hurting us," said Rahim Janoo, a former chairman of Rice Exporters Association of Pakistan.
He said rice exporters were feeling the pinch of the falling rupee in particular, because local prices of both Basmati and non-Basmati rice varieties have already started rising, making it difficult for them to remain competitive in the world market.
