After falling to an all-time low against the US dollar the day before, the Pakistani rupee rallied considerably on Friday in the interbank market, rising by roughly Rs15. The currency had risen to 284.009 from Thursday’s low of 298.93, a gain of 5.22%.
Investors took heart from the Supreme Court’s ruling that Imran Khan’s incarceration was unconstitutional and Finance Minister Ishaq Dar’s promise that Pakistan would meet its foreign obligations on schedule, leading to the uptick. Dar also disclosed that preparations had been made for $3.7 billion in foreign payments in May and June, with China likely to roll over another $2.4 billion.
Rupee performed worse in last few days
In the midst of a severe economic crisis and a postponement of the IMF bailout, the country’s political upheaval, caused by the imprisonment of Imran Khan, has made the rupee matters worse. The US dollar was near its highest level against rupee in a week, but investors are wagering that the Federal Reserve would delay further interest rate hikes due to the weakening economy.
The Dollar Index (DXY), which measures the US Dollar against a basket of six major currencies, has dipped to 102.02. However, it is expected to end a two-week losing run with a 0.7% weekly gain this week.
Early Asian trade on Friday saw oil prices, a crucial predictor of currency parity, rise modestly as traders covered their short positions ahead of the weekend. However, progress was hampered by concerns over the debt ceiling and fresh worries about a banking crisis in a US region.
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