KARACHI: The rupee recovered 1.33 per cent, or Rs3.11, against the dollar in the interbank market on Tuesday even though the greenback has been gaining strength over major world currencies.

One dollar cost Rs233.91 in the banking market versus the rate of Rs237.02 a day ago, according to data released by the State Bank of Pakistan (SBP).

The rupee has been gaining strength in recent sessions although the dollar has appreciated 24.54pc since the beginning of current calendar year.

Sentiments turned positive after Ishaq Dar was announced as new finance minister. The bullish trend was more visible in the open market where the exchange rate came down by Rs4 on Tuesday after shedding Rs7 a day ago. In total, the dollar rate came down by Rs11 in the open market during the last two days.

Currency dealers reported the easy availability of the dollar. Sellers are offloading their holdings as they fear greater losses in the coming days and weeks.

However, currency experts keenly watching the rupee’s recovery said sustainable elements are absent from the market. Only temporary but positive sentiments have set the rupee on the recovery path, they said.

They believe the biggest achievement of Mr Dar can be the restructuring of foreign loans, including those from China and the Paris Club. The structuring can provide the foreign exchange market with extra liquidity and stabilise the dollar rate.

Flood-hit Pakistan needs $30 billion support to rehabilitate 33 million affected people across the country. However, financial support received so far hasn’t been a billion dollars yet.

Currency experts said the developed countries are giving out peanuts against huge losses that Pakistan has incurred even though the real culprit is the high carbon emissions by the same advanced nations.

Published in Dawn, September 28th, 2022