After falling to a record low the previous day, the Pakistani rupee considerably recovered against the US dollar on Friday in the interbank market, recording a gain of approximately Rs15. The price of the currency was trading at 284.09, up 5.22% from its low of 298.93 on Thursday.
The increase was attributed to investors acting favourably after the Supreme Court ruled that Imran Khan’s incarceration was unlawful and after Finance Minister Ishaq Dar promised that Pakistan will promptly perform its international responsibilities. Dar also disclosed that a plan had been made for $3.7 billion in foreign payments in May and June, with China anticipated to roll over an additional $2.4 billion.
Imran Khan’s incarceration has increased political unrest in the nation, which has made an already dire economic crisis even worse and delayed the IMF rescue. The US dollar was almost at a one-week high internationally, but investors are wagering that the Federal Reserve will hold off on raising interest rates because the US economy is slowing down.
The dollar index, which compares the US dollar to six foreign currencies, marginally weakened to 102.02 but is expected to gain 0.7% this week, ending a two-week losing trend.
An important gauge of currency parity, oil prices, modestly rose in early Asian trade on Friday as traders covered their short positions in anticipation of the weekend. Gains were however limited by ambiguity around the US debt ceiling and resurgent worries about a regional banking crisis in the US.
