Following an eight-month high at PKR158.91 against the U.S. dollar, the Pakistani rupee is currently one of the best performing currencies in Asia.
Khurram Schehzad, CEO of Alpha Beta Core, said that the “Pakistani rupee entered the list of best-performing currencies in Asia, appreciating by 3.1% against the US dollar since October 1, 2020, thereby securing the position of third best-performing currency in Asia after Indonesian rupiah and South Korean won.”
According to the Bloomberg Index, Indonesia ranks first, South Korea second, and the Pakistani rupee ranks third.
In response to the rupee-dollar parity, A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities said “Dollar inflows are above-expectations. Expect another good show in remittances and the current account. With low oil prices, investors are de-dollarizing the savings. Expect further FX reserves once IMF [International Monetary Fund] tranche is cleared. A few milestones before that.”
According to the executive director of BMA Capital, Saad Hashmi, the rupee’s upward trend may persist following Biden’s win in the US elections, further stating that “Biden aims to improve US relationship with Iran; the development should push down crude oil prices in the international market as Iran is a major oil producer”.