The Pakistani rupee strengthened against the US dollar, as the greenback declined under Rs155 after six months. The USD has lost Rs9.1 as compared the PKR in the past six months.
Back in June 27, the dollar was being traded at Rs164.05 at the interbank market, which today (Monday) is being traded at Rs154. 95. Experts believed that the countermeasures taken by the authorities have put a brake on the high flying USD.
After the fall in the value of greenback, the value of foreign debt owed to Pakistan also decreased by Rs 976 billion.
Economists say remittances rise and dollar inflows have lead to prices drop. Commenting on the rupee's gains against the dollar, some leading experts observed that the rupee is likely to move higher in the coming days.
The dollar will depreciate gradually versus the rupee due to falling demand by the investors and common persons, they said. Some times ago, dollar's surge attracted buyers, who had no other option for investment as a safe haven, they added.
Last week, Moody's Investors Service affirmed Government of Pakistan's local and foreign currency long-term issuer and senior unsecured debt ratings at B3 and changed the outlook to stable from negative.
Giving the rationale, Moody said, “The change in outlook to stable is driven by Moody's expectations that the balance of payments dynamics will continue to improve, supported by policy adjustments and currency flexibility."
Furthermore, the Asian Development Bank on Friday approved $1.3 billion of policy based loans. The ADB approved $1 billion in immediate budget support to Pakistan, aiding the country's public finances and strengthening a stagnating economy. The bank further approved $300 Million to reform Pakistan's energy sector.