Dollar decreases by Rs5.86 as China lends $2b to Pakistan
Pakistan has received $1 billion from China. The remaining $1 billion is expected in the coming week. This has brought the value of dollar down from Rs127.86 to Rs122.
According to sources in the finance ministry, the State Bank has received $1 billion from China. As of July 26, the State Bank had $9.1 billion while commercial banks had over $6 billion. The total of the country’s foreign reserves is $15.72 billion, said State Bank officials. On August 2, the foreign reserves of the State Bank will go up by $1 billion as China’s loan will be added.
The dollar rose to Rs128 in the interbank market on July 16, a 5.3% increase from July 13 when it was trading at Rs121.46. On July 17, the value of the dollar rose to Rs128.40 as the value of rupee fell by another 40 paisa against the US dollar.
On July 27, the rupee continued its upward march against the dollar due to insignificant demand from corporate sector closing the week against the dollar at Rs127.80 and Rs127.90.
In the open market the week commenced in minus as panic dollar buying continued to exert downward pressure on the rupee. Extending week long weakness, the rupee on Monday plunged to historic lows against the dollar which was seen changing hands at Rs130.30 and Rs130.80 over the previous week’s closing levels of Rs130.20 and Rs130.70.
The rupee turned positive on July 22 after it managed to stage a recovery versus the dollar at Rs129.50 and Rs130.00 amid dull demand for dollar.
The rupee posted a sharp recovery on July 27, and consequently the dollar further drifted lower and closed the week at Rs127.00 and Rs127.70.
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