The US dollar sank to Rs183 on Monday as the country’s political upheaval abated following the withdrawal of former Prime Minister Imran Khan, with analysts forecasting a further drop in the greenback in the coming days.
The dollar sank to Rs183 in the interbank market at 12:01 p.m., down Rs1.68 from the previous day, according to the Forex Association of Pakistan. 184.68 to the dollar was the rupee’s final value for the week, following a recovery from 188.18 the previous week.
Malik Bostan, President of Pakistan’s Forex Association, told that the country’s political stability was behind the rupee’s rise.
Pakistani currency “has made a rebound after a time of uncertainty,” Malik Bostan stated, hoping that the rupee’s recovery would continue when the new administration takes office.
“Smooth” negotiations with the International Monetary Fund (IMF), he said, will begin once the new administration takes over. The dollar is anticipated to go below Rs180 this week, according to Bostan.
The chair of Pakistan’s Exchange Companies Association, Zafar Paracha, stated that political stability will contribute to revive the IMF programme, restoring corporate confidence, and attracting international investment.
“The rupee would recover faster if the dollar supply increases,” he remarked.
Topline Securities CEO Mohammad Sohail noted that the rupee and the stock market, both of which rose over 1,300 points on Monday, were also supporting the local currency bond market. There has been a 60-70 point drop in Pakistan Investment Bonds (PIBs) in the recent several days.”
India’s currency surged against the dollar by 1.9 percent on Friday, partly because of the Supreme Court’s decision to reinstate the National Assembly, as well as a 2.5 percent raise in the policy rate by the central bank.
The Supreme Court’s ruling, according to market analysts and currency traders, has diminished the long-term uncertainty that held the speculative market captive.
Despite this, they argue that the currency rate is still sensitive to a wide range of variables, including poor foreign exchange reserves and the economic plans of the new administration.
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