Powered by political stability, the Pakistani rupee continued to outperform the US dollar on Thursday, gaining a significant amount as traders took positions in the intrabank market.
After touching a historic low of Rs189 on April 7, the US dollar plummeted to Rs181.40 as the Pakistani currency continued to flex its muscles.
The rupee gained 42 paisas in no time as trading began.
The dollar was closed at Rs181.82 yesterday.
According to experts, the US dollar has lost Rs7.58 in value in the last five trading days, which is a very good sign for the Pakistani currency.
The Pakistani rupee has begun to show signs of recovery, according to economists, following the end of political uncertainty and the installation of a new government led by Prime Minister Shehbaz Sharif.
The IMF has already stated that once a new government is in place, it will begin its next review of the USD 6 billion bailout programme.
The IMF has put a halt to its review talks with the previous PTI government, expressing its displeasure with former Prime Minister Imran Khan’s relief package.
In addition, after the rupee hit an all-time low on April 7, the State Bank raised the policy rate by 250 basis points to 12.25 percent in an emergency meeting to help protect it from further declines.
Remittances are at an all-time high
Another encouraging development is that worker remittances hit a new high of $2.8 billion on March 22. Remittances totaled $23 billion in the first nine months of FY22, up 7.1 percent from the same period last year, according to a tweet from the State Bank of Pakistan (SBP) on Thursday morning.
