Pakistani rupee rebounds against US dollar

Rupee reaches 172.78, day after it had closed at an all-time low of Rs175.27 against US dollar

A currency exchange trader counts money at his office in Islamabad

KARACHI: Sharply recovering against the US dollar in the inter-bank market, the Pakistani rupee on Wednesday  reached Rs172.78 against the greenback.

The development came after Saudi Arabia announced that it was depositing $3 billion in the State Bank of Pakistan (SBP) to help support its foreign reserves.

According to data released by the central bank, the local currency appreciated around 1.44% (or Rs2.49) to settle at Rs172.78 in the inter-bank market. The local currency had closed at an all-time low of Rs175.27 against the greenback on Tuesday.

Late on Tuesday, the Saudi Fund for Development had said it was depositing $3 billion in State Bank of Pakistan (SBP) to help support its foreign reserves.

The fund added that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.

The news was acknowledged by all financial markets as it positively impacted the foreign exchange reserves.