Rupee makes recovery against US dollar during intra-day trading

The rupee made a decent recovery against the US dollar in early-morning trading, appreciating nearly 0.8% in the inter-bank on Wednesday, as import payments’ pressure seems to have subsided.

Reports indicate the US dollar traded at Rs201.19 before the afternoon.

The recovery comes after the rupee closed at 202.83 against the US dollar in the inter-bank market on Tuesday, the lowest closing level in history.

“Improvement in rupee comes as the likely completion of oil import payments has diffused demand for dollar in the market,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), told PEN.

Meanwhile, the government has moved to pacify economic sentiment in the country, taking various measures as it looks to rein in current expenditure.

At the same time, addressing a pre-budget seminar in Islamabad on Tuesday, Finance Minister Miftah Ismail said that the government would unveil a progressive fiscal consolidative budget designed to reduce the fiscal deficit below five percent without affecting the growth by much.

Furthermore, Prime Minister Shehbaz Sharif, in his remarks at the concluding session of the day-long pre-budget business conference, stated that the “charter of economy” is the need of the hour for the continuation of economic policies.

This is an intra-day update