KARACHI: After experiencing a string of losses during several previous sessions, the Pakistani rupee made gains against the US dollar as the week’s trading got underway on Monday. The rupee increased 4.02 against the dollar in intraday trade on the interbank market, reaching 235.62 from the previous session’s finish of 239.65, according to Investing.com.
After 15 straight sessions of losses against the dollar, the local currency on Friday, the penultimate trading day of the previous week, finally snapped its losing trend.Despite disastrous floods wrecking Pakistan’s economy, the rupee came close to hitting a record low of 240 versus the dollar but was unable to do so following many encouraging signs.
According to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), the market appears to be reacting to the arrival of PML-N leader Ishaq Dar and the announcement that he will succeed Miftah Ismail as finance minister.
After five years in self-imposed exile in London, Dar will return to Pakistan today with Prime Minister Shehbaz Sharif to “assist” the government’s efforts to revive a cash-strapped economy by taking up the crucial responsibilities of the finance ministry.
In addition to Dar’s announcement, Paracha pointed out that the market participants were noticing political stability as well, especially after PTI Chairman Imran Khan said he might run for office again if the alleged cypher, which is allegedly hiding threatening text behind the overthrow of his government, is investigated.
The International Monetary Fund’s (IMF’s) promises to assist Pakistan, the World Bank’s declaration regarding the repurposing of funds, and the assistance from the Asian Development Bank, according to the ECAP general secretary, have all raised market expectations.
