KARACHI: For the second straight day, the Pakistani rupee strengthened against the US dollar on Monday, adding Rs0.43 to its value.
According to information provided by the State Bank of Pakistan (SBP), the local currency rose 0.20% from Friday’s finish of 220.84 to settle at Rs220.41 per USD.
Market analysts claim that the rupee’s strengthening follows Pakistan’s removal from the Financial Action Task Force’s (FATF) list of nations undergoing “enhanced monitoring,” often known as the “grey list,” after four years.
The decision was made after two-day meetings of the FATF plenary and the International Co-operation Review Group (ICRG) that were conducted in Paris on October 20–21, 2021. T Raja Kumar, president of the FATF, made the announcement during a press conference.
According to experts, the change will improve Pakistan’s image and, in the long run, enable Pakistan to draw in international investment.
According to Tresmark, a terminal that tracks real-time pricing of financial markets, the rupee is predicted to trade at 216 to the dollar over the next 10 days and 210 to the dollar over the next 30.
“This is due to inflows relating to the ADB totaling $1.5 billion in the upcoming week and $2 billion in the first week of November. Naturally, this would not have been feasible without the finance minister’s rhetoric about the rupee’s low value, according to a client note from Tresmark.
The rupee would, however, face its true test six months from now, it was stated.
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