After Finance Minister Ishaq Dar predicted that the dollar will drop below Rs. 200 by the end of October, the Pakistani Rupee (PKR) maintained its enigmatic comeback against the US Dollar (USD) and made enormous gains of Rs. 2.13 during intraday trade today.
The local currency was fully in the green versus the US dollar when trading restarted at 222.75 on the open market. The dollar’s value versus the rupee dropped as low as 221.81 around 10:15 AM.
The finance minister spoke extensively about the dollar’s worth to a private television network and said that manipulation was to blame for the dollar’s current record-high valuation. He said that the inflation rate would drastically decrease if the PKR gained strength versus the US dollar.
Yesterday, the local currency increased by Rs. 1.69 (0.76 percent) and ended the day at Rs. 223.94 in relation to the US dollar.
Positive comments from money changers earlier today were found in our channel checks. These money changers believe that last week’s “Dar-inspired emotions” are what are driving the PKR increase. Due to the potential of further rupee value increases in the near future, traders are selling dollars in the market.
Other brokers cited a variety of factors, including the Asian Development Bank’s (ADB) offer of $2.3-2.5 billion in aid and predictions of a steady drop in imports, for the rupee’s increase. Money for flood assistance has started to arrive in Pakistan from all around the world. It is anticipated that the import bill would decrease, and even if it does increase, dollar inflows will continue.
To read our blog on “Ishaq Dar’s homecoming causes the rupee to strengthen against the dollar,” click here