KARACHI: The rupee made a recovery for the third consecutive day against the dollar on Friday, dealers said.
The local currency is continuously gaining value after the announcement of the Saudi financial assistance to Pakistan on October 26, 2021.
The exchange rate ended with a gain of 61 paisas in the rupee value to close at Rs171.65 against the greenback from the previous day’s closing of Rs172.26 in the interbank foreign exchange market.
The local currency has witnessed a gain of Rs3.62, or 2.06 per cent, against the dollar during the last three days. The rupee hit the historic low of Rs175.27 on October 27, 2021.
Saudi Arabia late Tuesday night announced an additional support of $3 billion to Pakistan for building its foreign exchange reserves.
The additional financial support is besides a $1.2 billion deferred oil facility to Pakistan to help its balance of payments position, an official statement said.
According to the Saudi Press Agency (SPA), the Saudi Fund for Development in a “generous gesture” announced a deposit of $3 billion with the State Bank of Pakistan (SBP) to help the government support its foreign exchange reserves and counter the impact of the coronavirus pandemic.
The dealers said Pakistan needs more inflows to stabilise the local currency. They said the exchange rates are facing immense external payments pressure.
The rupee remained under pressure since the start of the current fiscal year. It fell Rs14.11, or 8.95 per cent, from June 30, 2021 closing of Rs157.54 to Rs171.65 on October 29, 2021.