The Pakistani rupee gained against the US Dollar on Tuesday.
In the interbank market, the rupee posted a total gain of Rs. 2.37 to close at Rs. 161.12 against 1 US dollar.
During the last five sessions, the rupee has gained approximately Rs. 5.66 against the US dollar, noted Yaqoob Abubakar from Tresmark that tracks the financial market. He added that today’s appreciation in the parity was seen due to oil prices plunging to a record low and into negative territory on Monday as uncertainty mounted about storage for excess supply.
He further stated that his fall in the dollar has helped reduce pressure on external loans by Rs. 640 billion.
Adnan Sami Sheikh, a senior market analyst told Propakistani that foreigners have made a comeback by investing around $200 million in T-bills on Friday, which has helped the rupee gain momentum against the US dollar.
The second reason he quoted was that Pakistan will be receiving inflows from the International Monetary Fund, which will support the rupee further. He further added that lower oil prices and multilateral aid supported the parity from the front.
He also warned that the dollar might start rising again by the end of May as payments will be due if there is no deferment.