Rising rupee continues upward trend

The rupee has continued its upward trend as it reached Rs227.29 per dollar on Monday.

According to State Bank of Pakistan, the rupee closed at Rs227.29 per dollar after showing an appreciation of 0.51 percent or Rs1.16 on the first day of the new week against the closing value of Rs228.45 on Friday.

Komal Mansoor, Tresmark’s head of research, stated to local media that reduced fuel and electricity prices, reduced inflation in September at 23.18 percent compared with expectations of 27 percent, and expected $2-3 billion flood relief have helped in appreciation of the rupee.

She added that there may be shortage of reserves to be thrown into the market but the actions have seemed to be working for the time. She insisted that the yardstick used by the new finance minister should be made transparent and that all the stakeholders should have been taken onboard.

Zafar Paracha, Exchange Companies Association of Pakistan (ECAP) secretary general, termed the gradual appreciation of rupee as a positive sign. He said that the government should maintain the upward trend keeping away the anti-state elements and speculators from being benefitted.

Talking about Finance Minister Ishaq Dar, he said that Dar had been famous for keeping a strict eye on the value of dollar. He expressed the hope that dollar would come below Rs200 mark the way it was coming down.

He insisted that any pressure from exporters should be resisted and the government should not give in to the pressure.

Finance Minister Ishaq Dar had predicted during the last week that the rupee was going to further strengthen in the coming days. He had also warned those who were involved in artificial appreciation of the greenback.

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