In the interbank market, the Pakistani rupee significantly strengthened against the US dollar and gained 0.53% during Tuesday’s first trading hours.
In intraday trading, the rupee appreciated by Rs1.16 to 219.25 against the US dollar at roughly 11:40 a.m.
After gaining Re0.43 or 0.20% in the interbank market on Monday, the Pakistani rupee posted back-to-back gains versus the US dollar and concluded at 220.41.
The increase in the currency’s performance, according to experts, is the result of a shift in perception following Pakistan’s removal from the Financial Action Task Force (FATF) grey list on Friday.
Business communities applauded the move and believed that Pakistan’s removal on the grey list would usher in a period of increased exports and economic stability.
The United Business Group (UBG) Chairman of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Shahzad Ali Malik, indicated that as a result of the FATF decision, economic activity will be increased and will significantly aid in regaining the confidence of investors worldwide. Pakistan lost 38 billion US dollars in GDP as a result of this restriction from 2009 to 2019, bearing the price of world politics.
Globally, the safe-haven US dollar declined versus peers on Tuesday amid indications that the world’s largest economy is already being slowed down by Federal Reserve rate increases. At the same time, risk sentiment increased with Rishi Sunak’s impending appointment as prime minister of Britain.
The dollar index, which compares the value of the dollar to six important rival currencies, dropped to 111.78, not far from the previous low set on Friday of 111.68, the lowest point since October 6.
The US dollar weakened against major rivals on Tuesday, which helped oil prices, a crucial factor in determining currency parity, rise. However, gains were constrained by concerns about slowing global fuel demand growth amid negative economic statistics from important oil-importing economies like China.
