Islamabad: For the 12th consecutive session, the Pakistani rupee appreciated against the US dollar in the interbank market as well as the open market.
At the end of the session on Monday, the local currency appreciated by 0.89% to close at Rs217.97 against the greenback in the interbank market, the State Bank of Pakistan said.
— SBP (@StateBank_Pak) October 10, 2022
During the last week, the PKR gained more than 3.82%, falling from Rs228.45 to Rs219.92 in the interbank.
The bullish trend in PKR’s value is attributed to Ishaq Dar’s return, an advocate of a strong currency. Since his arrival, the PKR has started flying against the US dollar and has not yet seen a negative session.
The trend also continued despite the fact that last week Moody’s downgraded Pakistan’s sovereign credit rating by one notch to Caa1 from B3, citing increased government liquidity and external vulnerability risks, following the devastating floods that hit the country.
In response to this, Finance Minister Ishaq Dar on Friday warned Moody’s Investor Service, saying he would give a “befitting” reply in a meeting with its officials next week if the agency did not reverse the downgrade of Pakistan’s sovereign credit rating.
Similarly, Ishaq Dar said on Sunday that the government was not planning to seek debt restructuring from the Paris Club creditor nations. Addressing a press conference on Sunday, Dar said that the government has decided not to go to the Paris Club.
“We have decided not to go to the Paris Club,” Dar said, adding that in consultation with Prime Minister Shehbaz Sharif, it was decided that it was not in the country’s interest to seek a debt restructuring.
Dar vows to bring dollar below Rs200
Finance Minister Ishaq Dar has vowed to bring the US dollar below the Rs200 mark, saying that the real value of the greenback was lower than 200 Pakistani rupees.
He has said that the government was working on the formation of a comprehensive strategy to bring the dollar price down to its actual level, which was less than 200 rupees.
Since his takeover of the finance ministry, the Pakistani rupee has been on a continuous upward trajectory against the US dollar.