Karachi: The rupee continued to strengthen on Tuesday, gaining a total of PKR 1.63 on Monday, with the dollar now standing at PKR 181.30, news sources reported. The dollar has gained by PKR 6.83 since Friday (April 08).
According to reports, the rupee has risen by 3.6% in the last five days. The currency gained by PKR 3.50 in a single day (on Friday), returning to PKR 184.68. According to reports, the rupee will continue to appreciate in the coming days due to political stability and consensus on the IMF programme. On Monday, the PSX gained pace, with the PSX Karachi 100 posting a historic single-day gain of 1700 points, crossing the 46,000 barrier. The PSX rise and the rupee recovery have continued to reinforce each other, spreading positive sentiments across the business community.
Experts in the market believe that strengthening the rupee would reduce the current account deficit (CAD) and further stabilise the currency rate. It is worth noting that, following a monetary policy review, the SBP boosted the policy rate by 250 basis points, bringing it to 12.50%. The apex bank cited rising commodity prices in the international market, particularly oil prices, as the primary cause for the interest rate increase. The IMF welcomed the interest rate rise as an essential step toward controlling inflation and making the economy more stable with less borrowing.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
