KARACHI: The Pakistani rupee continued Wednesday to gain ground for the fourth consecutive session as the dollar’s slide persisted after federal minister Senator Ishaq Dar took charge of the finance ministry.
In the interbank market, the rupee gained 1.79 to close at 232.12 per dollar, according to the State Bank of Pakistan (SBP) after it increased its value by 7.53 in the ongoing week.
Currency dealers and analysts have cited that the return of Dar — a close aide of PML-N supremo Nawaz Sharif — to Pakistan to take charge as the finance minister has helped improve sentiment and the fall in international commodity prices boosted the rupee’s rise.
The current account deficit — fortunately — will likely remain in check on account of declining international commodity prices and administrative measures taken by the government.
Inflation, too, has most likely peaked and is expected to come down over the coming months, The News reported.
Talking to media, economist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said the first aspect is a change in market sentiment driven by a leadership change at the finance ministry.
“The new team is regarded to be more conscious of rupee movement and thus leaning to more orderly movement,” the former adviser said.
Secondly, he noted that some fundamentals have improved, especially a decline in oil prices as well as other key commodity prices, which may help reduce the quantum of imports.
“Thirdly, the confirmation by multilateral lenders to extend flood support is a market supporting development,” Dr Najeeb said.
Lastly, a bit farfetched but the possibility of reconsideration and leniency in some conditions by the International Monetary Fund (IMF) due to flood impact is driving a positive sentiment toward the rupee, Najeeb added.
