The Pakistani rupee’s 28-day winning streak against the US dollar ended, as official data on Tuesday revealed a minor dip. In the interbank market, the local currency closed at 277.03 against the dollar, marking a 0.07% decline.
Over the past month, the rupee has seen an impressive 10.9% or Rs30.3 surge against the dollar. The rupee’s ascent was fueled by strong inflows from exporters and their forward market activities.
Arif Habib Limited’s (AHL) Head of Research Tahir Abbas noted the need for a correction, considering the prolonged appreciation.
Regarding future trends, the rupee’s trajectory is expected to depend on Pakistan’s IMF review in November. Pakistan-Kuwait Head of Research Samiullah Tariq acknowledged the corrective move in agreement with Abbas.
In July, the IMF sanctioned a $3 billion Stand-By Arrangement (SBA) for Pakistan, with disbursements linked to quarterly reviews. Head of Equities at Intermarket Securities Raza Jafri predicted the rupee to stabilize and potentially resume its upward momentum.
