On Wednesday, the rupee had its strongest one-day gain versus the dollar in the interbank market, gaining by Rs9.59.
According to the State Bank of Pakistan (SBP), the rupee increased 4.19 percent to settle at Rs228.80 from yesterday’s level of Rs238.38.
It was the largest absolute single-day gain for the rupee, according to Arif Habib Limited.
According to FAP Chairperson Malik Bostan, the country’s trade deficit was reduced by the lower import bill for July, which relieved pressure on the rupee.
Journalist for business and economics Khurram Husain claimed that the rupee’s recovery was brought on by a dramatic decline in import payments following the clearing of all letters of credit for oil in July and the hasty closing of open accounts by exporters.
“Due to the nation’s current near-record gasoline and diesel stocks, August is anticipated to witness decreased oil-related payments. After a brief period of extremely high pressure in July, the Indian rupee has returned to its proper position “
The spectacular recovery we are currently experiencing, according to Mettis Global, is “mainly attributed to the stronger economic fundamentals as the import bill in July 2022 has fallen to $4.86 billion, down by 38.31%, compared to $7.88bn in the previous month.”
As a result, the trade deficit for July decreased to $2.64 billion from $4.96 billion the month before, a decline of 46.77 percent.