Rupee’s upward trend continues, KSE-100 index rises

Strengthening of rupee continued as the local currency appreciated by Rs2.11 to reach Rs224.04 whereas the KSE-100 index benchmark of the Pakistan Stock Exchange (PSX) rose by 670.87 points during the day.

The rupee has maintained its upward trend for more than a week as it regained another 0.94 percent or Rs2.11 to reach a three-week high of Rs224.04 against the US dollar in the inter-bank market on Friday, according to the State Bank of Pakistan (SBP).

Stocks have gained as the KSE-100 index gained 670.87 points, or 1.62 per cent, to close at 42,096.24 points on Friday.

Rupee appreciation and decreasing trade deficit have mainly started to ease the economic condition of Pakistan.

According to financial experts, army chief’s talks with officials of Saudi Arabia, United Arab Emirates (UAE) and United States of America (USA) for an early release of International Monetary Fund (IMF) loan tranche for the combined seventh and eighth reviews have acted as a catalyst.

Inflows, exports proceeds and deposited remittances have caused the appreciation of the local currency, market experts have said. They have also advised the government to look over the game played by the money exchangers who have caused problems and losses for the common man.

According to economists, in the coming days, rupee would show further strengthening mainly because of inflows. They are also predicting that the volatility of rupee as witnessed in July would not likely happen.

Data of Pakistan Bureau of Statistics (PBS) has showed that Pakistan’s trade deficit had declined by 18.33 percent to $2.64 billion in July. The month-on-month decline in trade deficit was recorded at 46.76 percent.