The Pakistani rupee is experiencing a continuous surge in value, and experts anticipate a drop in the US dollar to below 280 in the near future. This optimistic outlook is fueled by several factors, including the potential receipt of the International Monetary Fund’s (IMF) next tranche, improved balance of payments, and government measures to combat illicit dollar trading, all of which are bolstering investor confidence.
In the interbank market, the dollar concluded at Rs286.76, while the rupee displayed remarkable strength at 282.69 on Friday, marking a substantial 1.4% increase.
Financial analysts at Tresmark, a reputable financial services platform, predict that the rupee is poised to breach the 280 level, encountering only minor resistance around 275.
Tresmark noted, “The 275 level is simply a ‘goal-based’ level, and some consolidation at that level should be acceptable to all.”
Several key factors contribute to the rupee’s strengthening: the IMF appears to be moving closer to approving another tranche, which will provide a significant boost to the rupee; the closure of the Afghan border has curtailed smuggling, particularly of gold, a primary avenue for illicit wealth transfer; a surplus is anticipated in the current account, and remittances are expected to exceed expectations.
Furthermore, government initiatives to curb the misuse of the Afghan Transit Trade (ATT) and the continued decline in oil prices are poised to substantially benefit the balance of payments, providing vital support to the rupee’s ascent.
