KARACHI: Pakistani rupee extended gains against the United States (US) dollar at the start of Wednesday’s trading in the inter-bank market, touching a one-year high,

According to foreign currency dealers, the local currency appreciated by 38 paisa to 157.47 against the greenback. Yesterday, the dollar had closed at Rs157.85.

Economic analysts say the rupee appreciation is a result of foreign inflows in shape of remittances and loans.

Workers’ remittances exceeded $2 billion for a record eighth consecutive month in January 2021. Pakistan received $2.3 billion worth of remittances last month, up by 19 per cent as compared to January 2020. However, remittances slightly decreased as compared to $2.4 billion in December 2020.

Whereas, the current account deficit reduced to US$229 million in January 2021 from US$652 million last month. The SBP said that for the first seven months of the fiscal year 2020-21, the current account surplus is $912 million, a significant turnaround from the deficit of $2,544million during the same period last year.