It comes to an end for investors who are interested in the FX market when the political landscape is more stable.The rupee strengthened versus the US dollar in the interbank market.Since July 1, 2021, the local currency has devalued by Rs 24.48.
The rupee extended gains for the third straight day on Tuesday, boosted by prospects for political and economic stability following the establishment of a new government.
The State Bank of Pakistan (SBP) said that the local currency closed at Rs182.02, up 0.5 percent (or Rs0.91) from Monday’s interbank market closing of Rs182.93.
Investor speculation in the foreign exchange market came to an end as the political landscape stabilised with the election of newly elected Prime Minister Shehbaz Sharif.
Currency dealers feel that the easing of economic and political difficulties has bolstered sentiment toward the rupee, while the central bank’s actions to hike interest rates and control imports have also bolstered the local currency.
The central bank surprised markets last week by increasing the benchmark interest rate by 250 basis points to 12.25 percent.
For the last 11 months, the rupee has been declining. It has lost 19.53 percent (or Rs29.75) since May 2021, when it reached a new high of Rs152.27.
The Pakistani rupee has depreciated by 15.53 percent (or Rs24.48) since the start of the current fiscal year on July 1, 2021, central bank statistics indicated.
