Tahir Abbas, head of research at Arif Habib Limited, was quoted by The Express Tribune as saying that “the rupee continued to be the best performing currency week-on-week”.
Since current Finance Minister Ishaq Dar announced his return to the country last month, ending a five-year self-imposed exile, the Pakistani rupee has been gaining for 11 business days.
Dar apparently continued his earlier strategy of defending the rupee from the onslaught of the US currency after assuming power.
He believed that the rupee was undervalued at an all-time low of roughly $240 in July and suspected that commercial banks were manipulating the value of the rupee to further their own interests. This is currently being investigated.
With the US dollar strengthening against many other major world currencies, crude oil prices rising above $90 a barrel, worries about a European recession, a decline in Pakistan’s foreign exchange reserves, and a lackluster increase in exports, there is widespread speculation. that the rupee continues to depreciate.
Prior to this, the domestic currency remained highly volatile, bouncing back and forth between the world’s best and worst performing currencies over the previous seven days.
Prior to Dar’s departure, the rupee had fallen about 12% in 15 consecutive business days and hit a record low of about PKR 240 in late July on higher odds of debt repayment, such as a $1 payment. billion Sukuk will expire on December 5, 2022.
Dar attributed some of the turmoil in the domestic economy to Miftah Ismail’s policies.
However, according to The Express Tribune, Ismail has previously been praised for taking tough decisions that prevented Pakistan from defaulting and convinced the IMF to renew its loan program.