Rupee continues upward momentum, gains Rs1.47 in interbank trade

The rupee continued to show recovery in the interbank market on Monday, extending its gains against the dollar by more than Re1 in the early morning session. According to the Forex Association of Pakistan (FAP), the dollar was being traded at Rs218.45 around 9:50am, with the rupee appreciating Rs1.47, or 0.67pc, against the last session’s close of Rs219.92. FAP Chairperson Malik Bostan attributed the rupee’s gains to exporters “bringing their proceeds into the country at a rapid pace”. This, he explained, was causing a decline in the dollar’s demand. He also called for the dismissal of higher-ups at banks involved in the manipulation of the exchange rate and suggested that heavy fines be imposed on such banks. “The record of their transactions should be checked and a fine of double the amount of profit they have earned should be imposed so that satta bazi (speculation) can be prevented in the future” he said. Moreover, the FAP chairperson foresaw the rupee making further gains in the future, expecting the interest rate to remain stable or reduce.