The rupee continued to extend gains against the dollar on Wednesday, rising by approximately Rs2 in the interbank market in the morning session. According to the Forex Association of Pakistan (FAP), the local currency gained Rs2.14. An appreciation of 0.95 per cent — against yesterday’s close of Rs225.64. With the dollar’s value reducing to Rs223.50 in Morning Session.
Komal Mansoor, said the rupee was appreciating on the back of a “flood of positives” since Ishaq Dar took over as finance minister.
Inflation:
Fuel and electricity prices had been reduced. While inflation in September was measured at 23.18pc compared to expectations of 27pc, she noted. Flood relief to the tune of $2-3 billion was expected to flow in the short to medium term. The parity was being managed by verbal intervention, she added.
“We may not have the reserves to throw in the market to bring the parity down. But these tactics seem to be working for now. Whatever the yardstick used by the incoming finance minister, it should be made transparent and [implemented] after having all stakeholders on board,” Mansoor commented.
