Pakistani Rupee performance surprises US dollar in open market

Pakistani Rupee performance surprises US dollar in open market

KARACHI: Pakistani Rupee has performed exceptionally well and it was the first ever occasion in last four years that the US dollar lost Rs5.36 against the rupee on Monday in the inter-bank market, falling to Rs122.5.

As the markets opened, the Pakistan Stock Exchange (PSX) witnessed a positive trend. The benchmark KSE-100 index gained 314 points to reach 43,100 points.

The positive economic indicators are considered to be largely driven by what investors consider the return of political stability following the July 25 polls.

The national debt will decline by Rs450 billion as the rupee consolidates gains against the greenback.

In a comment to **, market analyst Samiullah Tariq said, "News of inflows from multiple channels including the credit line from the Islamic Development Bank (IDB) has created a positive sentiment about the balance of payments. This has resulted in a drop in dollar price in the interbank market against the rupee." link link

As the future outlook becomes clear and investors gain confidence about the outcome of their future investments, the market will continue to incorporate the positive sentiment in trading activities, Tariq said.

On Saturday, the US dollar had depreciated by Rs4 in the open market. The positive development was attributed to the end of political uncertainty following elections.