In view of the expectations of aid inflows from international financial institutions, the Pakistani rupee maintained its upward momentum against the US dollar for the 11th straight session on Friday in the interbank market.
The local currency was changing hands at Rs220.50 at around 10am in the interbank trade — an appreciation of Rs1.44 — compared with yesterday’s close of Rs221.94.
The expectation of aid from international financial institutions and bullish attitude also contributed to the rupee’s appreciation, according to a foreign exchange dealer.
Following the nomination of the new finance minister, there has been a renewed sense of optimism about the economy, according to Taurus Securities’ head of research Mustafa Mustansir.
On October 21, the Asian Development Bank (ADB) is expected to approve loans totaling about $2 billion to support Pakistan’s declining foreign exchange reserves.
The dealer continued, “However, we have to observe how the market will react to the unfavourable remarks from the global rating agency Moody’s on Pakistan’s economic position.
The local currency increased by Rs3.50 to close at 223.50 per dollar on Thursday in the open market, while it concluded the day at 221.94 per dollar in the interbank market, down from Wednesday’s close of 223.94. On a daily basis, it increased by Rs2, or 0.90%.
The local currency has increased by 8% against the dollar over the previous ten trading sessions.
