The rupee continued to gain against the US dollar as the greenback lost Rs1.45 in its value in the interbank trading on Monday. According to the forex dealers, the rupee continued its upward trajectory during morning trading activity as the local unit recovered further bringing down the US dollar rate at Rs227, down by Rs1.45. On Friday, the US dollar was closed at Rs228.45 and the rupee’s value witnessed an appreciation by 0.52%. The rupee seemed to have cultivated a no-holds-barred demeanor against the US dollar as it kept gaining in the interbank trading. The market is upbeat on the Ishaq Dar phenomenon as the recently-installed foreign minister is known for his strong-arming of the State Bank to bring the dollar rate down.

During last 6 days, the US dollar was depreciated by Rs12.65. In his presser on Saturday, Dar predicted that the rupee was going to further strengthen in coming days. “Appreciation of the US dollar against Pak rupee is the mother of all evils. Its appreciation against the rupee is artificial and I am telling you that the actual value of the rupee has been manipulated,” he emphasized. The recovery of PKR is also attributed to the strict action taken by the government against hundi/hawala networks and banks involved in speculation. Besides this, the import bill is also expected to shrink on the back of flood- related foreign assistance and a fall in global oil prices, which would prevent the balance of payments situation from getting bad.

Credit: Independent News Pakistan-INP