KARACHI: The Pakistani rupee continued to recover against the US dollar for the second consecutive session on Monday, according to the Exchange Companies Association of Pakistan (ECAP).
The local unit gained ground in view of expected dollar inflows from international lenders to support Pakistan’s relief and reconstruction efforts after the cataclysmic floods.
The rupee Friday broke its losing streak against the dollar after continuously depreciating for 15 consecutive sessions as the economy suffered following catastrophic floods.
In the interbank market during the intraday trade today, the rupee gained 3.76 against the dollar to reach 235.99, up in value from the previous session’s close of 239.65.
Last week, the rupee came close to reaching a record low of 240 against the dollar but due to several positive cues the market recovered.
ECAP General Secretary Zafar Paracha said it seems like the market is responding to PML-N leader Ishaq Dar’s arrival and the announcement of him replacing Miftah Ismail as the finance minister.
Dar will return to Pakistan along with Prime Minister Shehbaz Sharif in his plane today — after five years of self-imposed exile in London — to “facilitate” the government in its efforts to resurrect the cash-strapped economy by taking over the key portfolio of the finance ministry.
Apart from Dar’s announcement, Paracha noted that the market players were noting political stability as well — after PTI Chairman Imran Khan stated he could return to the parliament if the alleged cipher — purportedly containing threatening text behind his government’s ouster — is probed.
The forex trader also said that the announcement from the World Bank about repurposing funds, the International Monetary Fund’s (IMF) plans to help Pakistan, and the Asian Development Bank’s help boosted hopes of the market.