Rupee maintains uptrend, hits 2-week high

Gains Rs3.11 against dollar with upcoming change of finance minister

KARACHI:

Pakistani currency maintained its uptrend for the third consecutive working day on Tuesday, gaining 1.33% (or Rs3.11) to close at a two-week high at Rs233.91 against the US dollar in inter-bank market ahead of the change of finance minister.

With the latest recovery, the domestic currency has cumulatively regained 2.42% (or Rs5.80) in the past three working days.

Earlier, the currency received a battering for 15 days as it lost almost 12% (Rs25) to reach Rs239.71. It was just Rs0.23 shy of the all-time low of Rs239.94 hit on July 28, 2022. “The rupee has partially regained the lost ground against the greenback with the upcoming change of finance minister,” AHL Research Head Tahir Abbas said while talking to The Express Tribune.

PML-N stalwart Ishaq Dar is set to become the next finance minister after Miftah Ismail vacated the slot on party directives. “The rupee may return to Rs210-215 to a dollar in the next four to five weeks,” Abbas said.

Besides, the easing global commodity prices may result in a reduction in the country’s import bill. “This will help narrow down the current account deficit in the current fiscal year,” he said.

“Reduction in twin deficits is a positive development for the rupee in the long run,” he said.

“Rupee may continue to recover ground, as Pakistan has arranged all the required external financing. Inflows are estimated at $37 billion while outflows will be around $30 billion in FY23,” he said.

Besides, the global community has pledged $1.5-2 billion in flood aid for the rehabilitation of people and reconstruction of homes and infrastructure. “Inflows will build forex reserves and provide support to the rupee,” he hoped.

Published in The Express Tribune, September 28^th, 2022.

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