KARACHI: The Pakistani rupee was quoted almost 4 per cent firmer against the dollar on Saturday afternoon, but there was barely any trade and it was unclear how solid the recovery from Friday’s record low would prove, dealers said.

A sudden drop in the rupee on Friday prompted State Bank of Pakistan to issue a supportive statement after the market closed, and on Saturday the rupee was quoted at 66.75 and 68.00 to the dollar.

On Friday, the rupee fell 3.5 per cent to close at 69.40/60, making its depreciation 12.7 per cent so far this year.

The only deals done on Saturday were for very small amounts, and banks’ reluctance to trade was reflected in the wide bid and ask spreads.

“On Monday we’ll get a clearer picture,” said a senior trader based in Karachi.

Data released on Saturday showed the deficit doubled to $2.29 billion in April from a year ago, and had also widened 12.5 per cent from March.

Imports totaled $4.1 billion in April against $2.57 billion last year, while exports rose to $1.8 billion from $1.47 billion last year.

“The increase in imports was mainly on account of higher oil prices and that of other commodities and there was a fairly decent growth in exports,” said Asif Qureshi, head of research at Invisor Securities Ltd.

To calm nerves, the State Bank of Pakistan said on Friday evening that foreign currency inflows of up to $3.5 billion were expected in the short to medium term, which would help stabilise the rupee.

The central bank’s Governor, Shamshad Akhtar, said in the statement that there was no crisis and the rupee’s weakness did not reflect macro-economic fundamentals.

The central bank said it would take whatever steps were needed, while keeping a tight monetary stance. “Sentiment did improve after the State Bank’s statement. However, there is still pressure from the import side due to rising oil prices,” said another currency dealer.

There has been strong speculation that the central bank will raise interest rates, both to dampen inflation running at a 13-year high, and bolster the rupee.