Pakistani rupee’s record gain wipes out record loss against dollar
May 12, 2023 11:40 AM
As the political boil has come down a bit following the Supreme Court’s order declaring former premier and PTI Chairman Imran Khan’s arrest illegal yesterday, the Pakistani rupee that suffered an ignominious defeat at the hands of US dollar on Thursday has resuscitated by gaining enormously in its value during the interbank trade on Friday, reported 24NewsHD TV channel.
According to the money dealers, the market remained vibrant today and reposed confidence in the local currency that edged up by Rs14.18 – a massive gain during a single-day trade - leaving the US dollar to be traded at Rs284.75.
Yesterday, the rupee slipped an all-time low against the greenback and depreciated by 3.02%. The PKR was plunged by Rs8.78 against the US dollar which was closed at Rs299.
The money experts attribute today’s gain to the political tranquility that has come with the ruling of the Supreme Court which declared Imran Khan’s arrest illegal. The SC ruling has somewhat brought to an end to the street rioting started with the arrest of Imran Khan on Tuesday.
Apart from the bleak macros, the political unrest has a devastating impact on the health of local currency. The local unit was under heavy pressure since Tuesday when the news of Imran Khan’s arrest made rounds in the media, creating panic.
In another major development, the Bloomberg reported that the International Monetary Fund (IMF) has remained engaged with Pakistan on securing funding and policy assurances with the goal of reaching an agreement on the ninth review of the $6.7 billion loan agreed in 2019.
The government of Pakistan also assured the Fund that it would not implement a fuel subsidy programme.
The IMF also said that it would “continue engagement with the government on the loan despite the ramp-up in political tensions”.
Reporter Ashraf Khan