KARACHI – Pakistani Rupee rises further against US dollar in the interbankmarket.
The Pakistani rupee on Tuesday further appreciated against the U.S. dollarin the interbank market by two paisa, and hit Rs155.25. Yesterday, thelocal currency recovered by 20 paisa against the greenback.
Importantly, Moody’s Investors Service (“Moody’s”) has affirmed Pakistan’slocal and foreign currency long-term issuer and senior unsecured debtratings at B3 and changed the outlook to stable from negative.
According to a report issued by the bond credit rating business of Moody’sCorporation, “the change in outlook to stable is driven by Moody’sexpectations that the balance of payments dynamics will continue toimprove, supported by policy adjustments and currency flexibility.”
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It further stated, “Such developments reduce external vulnerability risks,although foreign exchange reserve buffers remain low and will take time torebuild. Moreover, while fiscal strength has weakened with higher debtlevels largely as a result of currency depreciation, ongoing fiscalreforms, including through the country’s International Monetary Fund (IMF)programme, will mitigate risks related to debt sustainability andgovernment liquidity.”
“The rating affirmation reflects Pakistan’s relatively large economy androbust long-term growth potential, coupled with ongoing institutionalenhancements that raise policy credibility and effectiveness, albeit from alow starting point.”
