US dollar drops by Rs1.89 in interbank

KARACHI: The rupee recovered against the US dollar in the interbank and open market on Wednesday.

The dollar dropped by Rs1.89, a decline of 1.4 per cent to close at Rs132.03 in interbank. The open market saw the dollar slipping by Rs2.40 to trade at Rs131.50.

Pakistani stocks rebound after Saudi Arabia financial deal

Benchmark index gains 1,556 points to 39,271 points; Dollar falls by Rs1.89 on news of Saudi assistance deal

The recovery comes after Saudi Arabia’s announcement of a $6 billion aid Package to Pakistan on Tuesday. Saudi Arabia will provide Pakistan with a deposit of $3 billion for a period of one year as balance of payment support. A one-year deferred payment facility for import oil, us to $3 billion will also be provided. This agreement will be in place for at least three years.

The news of the aid package also had a positive impact on the stock market. The Karachi Stock Exchange gained 1,556 points with about 327 companies showing plus signs. Market capitalization scored a rise of Rs254 billion.