After a great flow coming from foreign sources has positioned rupee in an increase. Pakistani rupee has emerged as the world’s best performing currency as it appreciated the most against the US dollar in the past three months.
Taking to his Twitter handle, Tangent Capital Advisers CEO Muzammil Aslam while citing Bloomberg data tweeted, “Pakistani rupee has been the world’s best currency against the US dollar from January 1 to March 31.”
PkR has been the World best currency against USD from January 1st to March 31st. It’s good to celebrate but equally concern to maintain the competitiveness. I’m on for gradual changes than abrupt. @StateBank_Pak pic.twitter.com/Dw3AsPrlqW
— Muzzammil Aslam (@MuzzammilAslam3) March 31, 2021
The rupee strengthened 4.09% to Rs153.55 against the US dollar during the day since the opening level of January 1, 2021, according to the data.
Revenue collection up 10% to Rs3,360bn despite 8% currency appreciation. March tax collection up 41% YoY to 460bn. This indicates Pakistan will surprise on growth projections. Secondly, FBR is on coarse to achieve 4900bn tax target.
— Muzzammil Aslam (@MuzzammilAslam3) March 31, 2021
Later, the rupee closed at Rs152.75 against the dollar in the domestic inter-bank market on Wednesday, Pakistan’s central bank reported.
According to data released by Bloomberg, the Canadian dollar stood at the second position among the top-performing currencies worldwide, as it appreciated 1.09% to 1.25 against the US dollar during the period under review. It was followed by the pound, which gained 0.64% against the US dollar during the same period.
“It is good to celebrate (the strengthening of rupee) but equally important is to maintain competitiveness. I am for gradual changes than abrupt,” Aslam said in his tweet.
Arif Habib Limited Head of Research Tahir Abbas, while talking to The Express Tribune, said the excessive inflow of dollars supported the rupee in maintaining the uptrend.
“The rupee may peak somewhere between Rs150 and Rs152 against the dollar under the current cycle of gains. It seems it will remain stable between Rs152 and Rs155 by the end of June 2021,” he estimated.
“In its latest move, Pakistan has successfully raised $2.5 billion through the sale of five to 30-year Eurobonds in the international market. It is backed by the resumption of International Monetary Fund (IMF) loan programme worth $6 billion,” Abbas added. Pakistan received the third loan tranche of around $500 million from the IMF on Tuesday (March 30) following the restart of the loan programme, which had been on hold since the Covid-19 outbreak in the country in February 2020.
“Going forward, the inflows are expected to continue to surge partially due to the release of remaining $4 billion later under the IMF Extended Fund Facility,” he said.
