The Rupee Continues to Strengthen Against the Dollar for a Second Consecutive Day

The local currency in Karachi, the rupee, increased in value against the US dollar for the second consecutive day on Thursday, due to the announcement that the International Monetary Fund would be presenting the draft memorandum of economic and financial policies to Pakistan.

During the trading day, the rupee appreciated by 4.83 against the dollar in the interbank market. The exchange rate is currently at Rs268.50 for one dollar, compared to the previous day’s closing rate of Rs273.33.

Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha termed it a “good day” for the economy. 

“The main reason behind [rupee’s appreciation] is the staff-level agreement between Pakistan and IMF drawing closer, with sources claiming that the talks went successful,” said Paracha. 

According to a currency dealer, the appreciation of the rupee against the US dollar in the interbank market was also due to the fact that exporters who had delayed their payments began to exchange them, and the flow of remittances from Pakistani nationals abroad has also started.

“The economy will be better in the coming days and foreign direct investments will also be received,” predicted Paracha. 

Capital market expert Saad Ali informed that the appreciation of the rupee was driven by growing optimism in the market about economic stability, which was fueled by news of Qatar investing in state-owned assets.

He also acknowledged that the positive outcome of the talks with the International Monetary Fund also contributed to the increase in value of the local currency.