On Tuesday, the US dollar maintained its downward trend for the third straight session, which helped the Pakistani rupee advance further. After the local currency lost money repeatedly over the course of multiple sessions in the previous trading week, the dollar fell Rs3.20 versus the rupee on Tuesday and was trading at Rs234 in intraday trade on the interbank market as of 10:30 am. Even though the trading week is only two days old, the dollar has already lost Rs5.15 in the interbank market.
Following a 15-session losing streak versus the dollar, the local currency suddenly reversed course on Friday, the penultimate trading day of the previous week. Even though Pakistan’s economy was destroyed by terrible floods, the rupee came close to falling to a historic low of 240 against the dollar but was unable to do so due to a number of promising signals.
The presence of PML-N leader Ishaq Dar and the declaration that he will succeed Miftah Ismail as finance minister, according to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), appears to have had an impact on the market.
After living in self-imposed exile in London for five years, Dar has returned to Pakistan to “assist” the government’s efforts to revive a cash-strapped economy by taking up the crucial responsibilities of the finance minister.
The International Monetary Fund’s (IMF) promises to assist Pakistan, the World Bank’s announcement regarding the repurposing of funds, and the assistance from the Asian Development Bank, according to the ECAP general secretary, has raised market expectations.
