Pakistani rupee extends winning streak against US dollar

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rupee US dollar

Islamabad: The Pakistani rupee on Friday gained Rs2.02 against the US dollar in the interbank market, taking its winning streak into the next week.

At the end of today’s session, the local currency appreciated by 0.92% or Rs2.02 against the greenback to settle at Rs219.92.

The PKR started the week at Rs228.45 against the USD. During the week, it appreciated by 3.82%.

The bullish trend in PKR’s value is attributed to Ishaq Dar’s return, an advocate of a strong currency. Since his arrival on Monday last week, the PKR has started flying against the US dollar and has not yet seen a negative session.

In a major move, Moody’s Investor Service on Thursday cut 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.

“The decision to downgrade the ratings to Caa1 is driven by increased government liquidity and external vulnerability risks and higher debt sustainability risks, in the aftermath of devastating floods that hit the country since June 2022. The floods have exacerbated Pakistan’s liquidity and external credit weaknesses and vastly increase social spending needs, while government revenue is severely hit,” it said in a statement.

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.

“They (Moody’s officials) have to meet me. I told them if you don’t [reverse] this, I will give you a befitting response in our meeting next week,” he said.

Trade deficit of Pakistan declines 21.42% YoY in first quarter of FY23

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.

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