Rupee appreciates further to reach 233.91 per dollar

Picture source - Reuters

The rupee has appreciated by Rs3.11 or by 1.33 percent to reach Rs233.91 per dollar against its previous day’s close of Rs237.02 in the interbank market, State Bank of Pakistan has said.

Komal Mansoor, head of research at Tresmark, told local media that despite the “Dar-jolt” strengthening the rupee, there had been underlying fundamental weakness. She said that larger economies have been waging a reverse currency war with the intention to strengthen their currency against the dollar.

Komal Mansoor gave the examples of Japan intervening to strengthen the yen for the first time in more than two decades, Indian spending $90bn to support its currency.

She added that though the SBP was using subtle interventions to tame the market, it was time to be more vocal and assertive with creditors and lenders.

There has been division among analysts and experts over Dar joining and dollar rate coming down.

Some analysts and experts have been contended that Dar would bring down the dollar rate as he had done in the past when rupee-dollar parity was kept at around 100, while others have argued against it.

Zafar Paracha, Exchange Companies Association of Pakistan’s (ECAP) general secretary, has said that assurances from the international money lenders including the World Bank, Asian Development Bank and others combined with globally reducing oil prices have led to expectations of lower import bill. He said that these factors have helped rupee recover.

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