Web Desk (LTN NEWS): In the week that ended on Friday, the Pakistani currency went up by Rs11.20, which was the second-highest gain. Daily, it went up by 0.52%, or Rs1.18, reaching a new three-week high of Rs228.45 against the US dollar.
In a short commentary, Arif Habib Limited Head of Research Tahir Abbas said, “It (Rs11.20) is the second-highest weekly recovery (in the country’s history).”
He did the math and found that the rupee gained almost 5% in the week of September 26-30, 2022.
Friday was the sixth working day in a row that the currency kept going up. In six days, it went back up 4.69 percent, which is Rs11.26.
Read PKR fly high by Rs1.88 in Interbank
The central bank also said that the Real Effective Exchange Rate (REER), which is the value of the Pakistani rupee against a basket of currencies of its trading partners, “increased to 94.3 in August from 93.2 in July due to high inflation in Pakistan compared to its trading partners.”
On August 31, 2022, the last value of the rupee against the Dollar was Rs218.75. On July 29, 2022, the last day of trading, it closed at Rs239.37.
Analysts say that a REER of less than 100 is good for the national economy because it helps exports and makes imports more expensive.
In the past, the government took several administrative steps to limit imports and help exports. The analyst said that the economy was helped by REER being around 94 in August.
When the exchange rate between the rupee and the Dollar increases, REER also increases, and vice versa.
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