KARACHI: The Pakistani rupee continued to perform well against the US dollar, as the greenback declined by a fresh Rs0.57 to Rs169.97 in the inter-bank market.
Analysts believe that the rupee is recovering on the back of a 7% month-on-month decline in the trade deficit and clarity on the International Monetary Fund (IMF) programme.
With a fresh increase of 0.34%, the currency has gained around Rs5.30 against the greenback during the last six sessions. While it has appreciated by 3.12% since its all-time low of Rs175.27 recorded on October 26.
Speaking to Geo.tv, Arif Habib Limited Head of Research Tahir Abbas said that the correction is in line with market expectations.
“Deposits worth $3 billion from Saudi Fund for Development has reversed the downtrend by improving the foreign reserves,” he said.
Moreover, the analyst added that the market now has clarity regarding IMF and the trade deficit has also declined. “Because of these the pressure on currency has eased,” he added.
Abbas further added that the rupee will remain in the consolidation phase as with the revival of the IMF programme, Pakistan will also get funds/loans from World Bank and Asian Development Bank.
He predicted that keeping in view all these factors and the measures taken by the government and central bank, the local currency is expected to touch Rs167-168 against the US dollar.