Rupee continues gaining momentum, rises further by 2.49 to Rs229.63

5th consecutive session since Friday rupee rose by Rs10.08 or 4.2%

The rupee continues to gain momentum against the US dollar has risen further by Rs2.49 in the interbank market on Thursday.

According to the State Bank of Pakistan (SBP), the rupee has closed at Rs229.63 per dollar showing an appreciation of Rs2.49 or by 1.08 percent against its previous day’s close of Rs232.12.

In the fifth continuous session since Friday, the rupee rose by Rs10.08 or 4.2 percent after getting close to its all-time-low value of Rs239.94 on September 22.

Zafar Paracha, Secretary General of Exchange Companies Association of Pakistan (ECAP), has said that the rupee was on an upward trend because Ishaq Dar’s return as finance minister has changed the sentiments.

Paracha also added that Ishaq Dar could not fix the dollar because he will face difficulties; adding that the long-term policies introduced by Dar will have to be seen.

He also said that due to appreciation of rupee the debt of Pakistan has reduced by around Rs1 trillion in the last four days; calling it a welcome uptrend he said that after a considerable time sentiments have changed.

He suggested that by reduction in imports and increasing exports, Iran and Afghanistan draining Pakistan’s foreign exchange the need of revisiting trade and immigration policies with them should be steps taken.

Komal Mansoor, Tresmark’s Head of Research, said that other economic factors were not being taken into account; adding that Dar’s fixation on a stronger rupee was strengthening the PKR.

She further added, “Many analysts are speculating the parity to touch 220 levels [and] the ambitious ones are expecting levels around 200. Anything like this should be done after taking all stakeholders in confidence, especially the IMF.”

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