Pakistani Rupee strengthens against US dollar in interbank market
KARACHI: The Pakistani rupee is gaining against the USD and was trading at Rs165.04/ dollar earlier today, the highest the rupee has been since June 2020.
Sources state that this strengthening of the rupee is a result of inflows from the Asian Development Bank that have been realised.
*Profit* has contacted the State Bank of Pakistan (SBP) and ADB and is waiting for confirmation regarding the inflow.
Reserves by SBP stood at $12,701 m as of 18th September 2020. If the inflow is realized, this will bring the reserves to approximately $13,001 m.
On September 28, 2020, the ADB approved a $300 m loan to support Pakistan’s financial sector by supporting measures to develop competitive capital markets and encourage private sector investment in the country.
As for fundamentals, Komal Mansoor, Senior Analyst at Tresmark says that the upward trend in the value of the rupee over the past two days can be attributed to a number of reasons