11 August 2022: Rupee continues to bounce back against US dollar and drops to Rs219.21 during intraday trade. US dollar was being traded at Rs221.91 in the interbank market, a day earlier.
The Pakistani Rupee has started gaining value against US dollar in the interbank market after failing to an intense low during the last month. As per the Exchange Companies Association Pakistan (ECAP), the dollar run down by Rs2.70 and is being traded at Rs219.21. A day earlier, the Pakistani currency had closed at Rs221.91. During the last seven to eight sessions, the rupee’s value increased 7% against the dollar.
According to traders and experts, the local currency is expected to improve more in the coming weeks due to the revival of IMF program from August 9 to 24. Due to this, the crisis in the market is ending as the expected release of IMF program created confidence among traders and investors. As per sources, a staff-level agreement related to funding release has been signed and approved by IMF board however Pakistan will expectedly get funds by the end of August.
The inflation number for the month of August is also expected to be lower as Pakistan’s Eurobound rating is also improving according to the data shown by the Forex Association of Pakistan (FAP). Besides, UAE intends a huge investment in Pakistan’s economic and investment areas worth $1 billion, boosting more confidence in the market.
Federal Minister for Finance and Revenue Miftah Ismail claims that Pakistan’s economy is heading in the right direction. During an interview with CNBC, he said, “There were serious worries about Pakistan heading Sri Lanka’s way and Pakistan getting into a default-like situation but thankfully, we made some significant changes. I think we averted that situation.” Miftah is also hopeful for inflation to come down to 12% which is around 25% at the current time.