The rupee recovers over Rs1.91 to intra-day high at Rs149 to the US dollar in the inter-bank market on Monday. The rupee has maintained uptrend on the third straight day on Monday.
Cumulatively, it has regained Rs2.45 or 1.61 percent in the past three working days. The rupee recovers following the kingdom of Saudi Arabia activated (from July 2019) credit line worth $3.2 billion to supply petroleum oil to Pakistan on deferred payment.
The credit line has lowered import payment pressure on Islamabad.
Pakistan remains a net oil importing country and oil remains its largest import commodity. Oil import constitutes around one-fourth of the total import bill because Islamabad meets nearly 70-80 percent of energy needs through imports.
Earlier, the central bank let the rupee depreciate 7.5 percent to an all-time low of 151.95 against the greenback from May 16 to 20.
In addition to the Riyadh credit line, Arif Habib Limited Head of Research Samiullah Tariq recalled Advisor to PM on Finance has announced last week that the Islamic Development Bank (IDB) would also revive credit line worth $1.2 billion for oil imports from July.
Besides, the past trends suggest the supply of dollars and other foreign currencies increase in the system in the last 10 days of Ramadan.
The hope for receipt of higher workers remittance inflows from overseas Pakistani is also supporting the uptrend in rupee, Tariq said.
At the open market, the rupee recovered Rs1 to Rs150.50 to the greenback.