On renewed hope that now the International Monetary Fund (IMF) rescue package could resume by the end of this month and stronger economic data, traders anticipate that the Pakistani rupee will continue its upward trajectory.
In three trading days this week, the local currency increased by almost 3% in value in relation to the US dollar. On Wednesday, it reached a conclusion at 221.91 per dollar, and on Friday, it reached 2015.49. The regional unit continued to rise, following increases in the regional equities market.
The rupee was maintained by an increase in the availability of dollars brought on by export-related profits, a down in the price of crude oil globally, stability in the country’s political situation, and a reduction in US inflationary pressures.
With the reduction in default fears, the values of Pakistan’s dollar-denominated sovereign bonds also began to rise. The country’s five-year currency default exchange dropped from a peak of 34.86% on July 20 to 17.44% on August 10.
