- Rupee closes at Rs220.41 in interbank market.
- Improvement in rupee comes after FATF’s decision.
- Tresmark says rupee is expected to trade at 216 in the next 10 days.
KARACHI: The Pakistani rupee continued to recover for the second consecutive session on Monday, gaining Rs0.43 against the US dollar in the interbank market.
The data released by the State Bank of Pakistan (SBP) showed that the local currency closed at Rs220.41 per dollar after appreciating 0.20% compared to Friday’s close of 220.84.
As per market experts, the improvement in the rupee comes after the Financial Action Task Force (FATF) on Friday removed Pakistan, by consensus, from its list of countries under “increased monitoring”, also known as the “grey list” after four years.
The decision was taken in a two-day FATF plenary and International Co-operation Review Group (ICRG) meetings held from October 20-21, 2021 in Paris, and the same was announced in a press conference by the FATF’s president, T Raja Kumar.
Experts believe that the development would boost the country’s perception and allow Pakistan to attract foreign investment in the long run.
The rupee is expected to trade at 216 to the dollar in the next 10 days and 210 to the dollar in the following 30 days, according to Tresmark, a terminal that monitors live prices of financial markets.
“This is because of ADB-related inflows of $1.5 billion in the coming week and $2 billion of inflows in the first week of November. Of course, this would not have been possible without the finance minister’s undervalued rupee mantra,” Tresmark said in a client note.
But the real test for the rupee would be six months from now, it added.