The rupee increased by Rs1.06 against the US dollar in the interbank market on Monday, which an analyst said could be credited to the crackdown on the money market by the government.
The dollar was trading for Rs290.70 in the interbank market at about 11:00am, according to the Forex Association of Pakistan.
Trading for the dollar closed at Rs291.76 in the interbank market on Friday, extending the upward trajectory that has continued since the army-backed crackdown on the illegal trade of the dollar began early this month.
In the open market, the rupee gained by 0.17pc or 50 paisas against the greenback, with the foreign currency being traded at Rs292.50.
Komal Mansoor, head of strategy at financial services firm Tresmark, said in approximately the past four weeks, the rupee had seen gains “triggered by the crackdown in open market followed by significant forward selling by exporters”.
She added that the greenback “may stabilise around 295 but may not sustain those levels for long”. However, she warned that former finance minister Ishaq Dar “made the same mistake last year, who tried to beat the rupee down to 200. That effort was followed by [a] massive devaluation in January that wiped out all his efforts”.
More to follow
