In the early trade on Monday, the Pakistani rupee surged by Rs4.15 against the dollar in the interbank market.
As of 10am, the PKR was trading at Rs235.5 per $1, according to information from the Pakistan Forex Association (FAP). This represents a rise of 1.73 percent from the Friday closing price of Rs239.65.
FAP Chairman Malik Bostan claimed that the decrease in global crude oil prices, which had raised hopes of a reduction in the import bill and, consequently, the trade deficit, was the main driver of the PKR’s advances.
He said that Ishaq Dar, the head of the PML-N, becoming finance minister also contributed to the rupee’s recovery. “Dar fixed the price of the dollar at Rs. 90 for a very long time in the past… When Dar is appointed minister, I anticipate that speculation in the interbank market would end, raising the value of the rupee.
He pointed out that the FAP had previously worked with Dar to raise the value of the rupee relative to the dollar and said that the group could work with him to develop a strategy to “rapidly bring down the dollar rates.”
Bostan added that he anticipated Dar to agree to the association’s demands in relation to the traveler’s currency disclosure policy, which would improve the market’s supply of dollars.
Institutions of international finance are assisting Pakistan in dealing with floods. Additionally, the International Monetary Fund has stated that it will loosen the program’s requirements. The rupee will benefit as a result of this.
Today, Dar, who will take over as the next finance minister, will accompany Prime Minister Shehbaz Sharif as he travels back to Pakistan.
The rupee had managed to stage a modest recovery — gaining six paise —against the US dollar on Friday after suffering losses in the previous 15 consecutive sessions.
