Rupee continues to gain ground against dollar, closes at Rs233.9

KARACHI: The Pakistani rupee gained further ground as the US dollar continued its declining trend for the third consecutive session, closing at Rs233.91 on Tuesday.

The dollar lost Rs3.11 against the rupee and closed at Rs233.91 in the interbank market at the end of trade session, after the local unit suffered consecutive losses during several sessions in the last trading week.

The dollar has so far shed Rs5.15 in the interbank market, only two days into the trade week. The local currency on Friday — the last trading day of the outgoing week — finally broke its losing streak against the dollar after continuously depreciating for 15 consecutive sessions.

The rupee came close to reaching a record low of 240 against the dollar but was unable to do so after several positive cues despite deadly floods devastating Pakistan’s economy.

Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said it seemed the market was responding to PML-N leader Ishaq Dar’s arrival and the announcement of him replacing Miftah Ismail as the finance minister.

Dar has returned to Pakistan after five years of self-imposed exile in London to “facilitate” the government in its efforts to resurrect a cash-strapped economy by taking over the key portfolio of the finance ministry.

Apart from Dar’s announcement, Paracha noted the market players were noting political stability as well — after PTI Chairman Imran Khan stated he could return to parliament if the alleged cipher — purportedly containing threatening text behind his government’s ouster — was probed.

The ECAP general secretary also said the announcement from the World Bank about repurposing funds, the International Monetary Fund’s (IMF) plans to help Pakistan, and the Asian Development Bank’s help had boosted hopes of the market.