Pakistani rupee strengthens against US dollar on positive sentiments.
The local currency increased by Rupee 0.26 or 0.12% from Friday’s closure of 221.92 to close at Rs221.66. Since there is some resistance near the 221 level due to the predominance of the bullish feeling in the market reinforced by certain favorable developments, currency dealers predict the currency to remain range-bound or advance somewhat versus the US dollar during the current week.
Once more in the positive range, the forward swaps show that there is enough forex liquidity. A memorandum of understanding between Pakistan and China has been signed on the establishment of RMB (Chinese currency) clearance arrangements in Pakistan.
International financial institutions are anticipated to invest in the nation. Pakistan has been promised $2.5 billion in World Bank flood assistance. Affected nations should be compensated, according to the participants in the climate summit, so aid may keep coming in.
In the meantime, a risk-on attitude helped the US dollar decline against the euro and sterling on Monday. The safe-haven US dollar index declined 0.54% to 110.49 against a basket of currencies. It had dropped about 2% by the end of last week.
