Rupee Strengthens More Against The Dollar Following Ishaq Dar’s Warning
September 29, 2022 / By Zunair Tahir / Pakistan News
Following a change in leadership at the Ministry of Finance and a warning from Ishaq Dar to the speculators using the local currency, the rupee appreciated versus the dollar on Thursday for the fifth straight trading day.
The dollar’s value in the interbank market dropped during intraday trade from the previous session’s finish of 232.12 to 231 per rupee.
The PML-N supremo Nawaz Sharif’s close aide Ishaq Dar’s reappointment as the nation’s finance minister has contributed to bettering sentiment, while the decline in global commodity prices fueled the rupee’s advance.
Dr. Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, stated in an interview with Geo.tv that the first factor is a shift in market attitude brought on by a change in leadership at the finance ministry.
The previous advisor claimed that “the new team is viewed to be more sensitive of rupee movement and so leaning toward more orderly progress.”
Second, he pointed out that several fundamentals had improved, particularly the drop in oil and other important commodity prices, which may assist to lower the volume of imports.
Fortunately, the government’s administrative actions and the dropping global commodity prices will likely keep the current account deficit under control.
The rate of inflation has also likely reached its peak and is anticipated to decline during the ensuing months.
Dr. Najeeb added that the World Bank and the Asian Move Bank’s confirmation to give flood assistance is a market-supporting development.
The analyst went on to say that although it seems improbable, the potential for reconsideration and relaxation of some criteria by the International Monetary Fund (IMF) owing to the impact of the floods is boosting the rupee’s value.
The new finance czar asserts that the value of the local unit is undervalued and that he would try to control inflation by decreasing interest rates. He has firmly supported intervention in currency markets during his three prior tenures in the position.
Dar has also forwarded a warning to investors not to manipulate the currency markets.
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