The rupee rises to 156.40 Rs per dollar in interbank; PSX attends a bullish trend

The Pakistan rupee depreciated Thursday against the US dollar in 15 countries of the interbank market and traded at Rs 156.38. The US dollar in the free market remained unchanged at 156.50.

Yesterday, the local currency rose to 39 paisa against the dollar on the interbank market and closed at 156.23 rupees.

On Monday, the local currency gained 24 paisa against the dollar and closed at 156.52 rupees.

Friday, the rupee has appreciated 66 paisa against the dollar and closed at 156.86 rupees on the interbank market.

In the last two months, the rupee has improved by 7.39 Rs against the dollar on the interbank market. In two months on the free market, the US dollar lost its value of Rs 6.80 against the rupee.

Previously, Pakistan had received more remittances sent by Pakistanis abroad during the first month of July of the current 2019-2020 fiscal year.

Forex traders believe that the growing influx of remittances has supported the local rupiah in the market.
In the first few weeks, it was observed that the rupee had depreciated cumulatively against the dollar, which had led to higher prices for goods and difficulties for the general public.

The SBP allowed the rupee to depreciate considerably in the interbank market after finalizing an agreement with the International Monetary Fund (IMF) for a loan program on May 12.

The IMF has asked Pakistan to end the state's control of the rupee and allow the currency to move freely to find its equilibrium against the US dollar.

On the other hand, the World Bank Group has also supported the idea of ​​leaving the rupee free of state control in order to boost exports and recover an unstable economy.

In previous weeks, the local currency had depreciated sharply despite the payment of the first $ 991.4 million of the International Monetary Fund (IMF).

The strict conditions, to which the global lender has officially approved the $ 6 billion bailout for Pakistan, appear to have put more pressure on the local currency.

The gradual fall of the rupee is due to the strong demand of the dollar compared to an insufficient supply, the country continuing to make aggressive international payments to pay in part the huge external debt and imports.

Economists believe that effective measures must be implemented as a matter of priority to recover the balance of payments deficit.

In addition to rising demand for the local dollar, they described the "balance of payments deficit" as the main reason for the recent rise in the value of the US dollar.

In addition, they had estimated that government exports and investment should increase substantially and that imports should be reduced to eliminate the pressure on the local currency.

According to experts, the government must ensure the implementation of economic policies after the agreement with the IMF.

It is expected that the US dollar exchange rate will fluctuate for some time and that the value of the Pakistan rupee will stabilize after the proper implementation of economic policies.

PSX earns 423 points

The Pakistan Stock Exchange (PSX) posted a positive trend on Thursday as the KSE-100 benchmark gained 423 points and rallied to 30,668 points. Last Monday, PSX lost 830 points and closed at 30,520 points.

Recent tensions between Pakistan and India over nuclear weapons following the conflict in Kashmir have led investors to adopt a cautious approach to trade.

In addition, since the approval of the financial budget for 2019-2020, strict policies have been applied to the fall of the stock market.

According to a report by JS Global, "the local stock market has closed positively in the face of rumors that Pakistan could get out of the FATF gray list." Market analysts expect a positive stock market momentum in the coming days.

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