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Following a correction, the rupee resumes its recovery against the dollar.

The Pakistani rupee resumed its recovery trend against the US dollar in the interbank market on Friday, following a correction in the previous two sessions.

The Pakistani rupee closed at Rs214.65 per dollar in the interbank market, up 0.14%, according to data released by the State Bank of Pakistan (SBP).

The rupee, which was the best-performing currency in the world on Monday, had lost more than Re1 in the last two days (Wednesday-Thursday) as it corrected after posting the largest gain of 11% in the first half of August when compared to all other currencies on the Bloomberg terminal.

Analysts and currency dealers believe the currency will continue to be under pressure until the International Monetary Fund’s board meeting on August 29.

Meanwhile, foreign exchange reserves increased after a four-week hiatus. Investors’ confidence in the local currency was boosted by assurances about the availability of US currency.

Investors, on the other hand, are treading carefully as they assess the potential impact of the coalition government’s decision to lift the import ban on non-essential and luxury items after three months.