Pakistani Rupee against dollar rate recovered up to PKR 136 during early day trading in the open market on Monday as the greenback fell by Rs 3 to Rs 136.
Previously, the US dollar rate was trading at Rs 139.02 in the interbank market.
The US dollar rate had increased by PKR 8 in the inter bank market during trading on Friday, taking it to Rs 142, and by the day end it closed at Rs 139.
Commenting on a latest drop, experts said the appreciation of Pakistani rupee is a temporary phenomenon. It is feared to depreciate again in view of foreign loan payments the government was about to undertake.
The Pakistan Stock Exchange 100 index also fell by 700 points from the current 40,000 pts in the early day trading.
The current account deficit was said to be reason behind latest appreciation of the US dollar. The government is holding talks with the International Monetary Fund.
The global monetary body has asked Pakistan bring down Pakistani rupee in terms of the US dollar rate.
Economic expert, Samiullah Tariq, said the reserves of the State Bank of Pakistan had declined below critical level. He said the Pakistani currency was facing a huge pressure at the moment.
On October 9, the US dollar rate had dramatically surged to Rs 133.64 and it was highest ever in the country at that time.
The SBP had explained the move as reflective of current account dynamics and a demand-supply gap in the foreign exchange market.
“Although the current account deficit narrowed in August 2018, a consistent increase in the oil import bill on account of rising international oil prices has exerted pressure in the foreign exchange market,” the central bank said in a statement.
“The SBP is of the view that this adjustment in the exchange rate along with lagged impact of recent hikes in the policy rate and other policy measures to contain imports will correct the imbalances in the external account,” it added.