Last week, the unstable Pakistani currency, Rupee (PKR), became the best-performing currency in the world. The PKR made the biggest gain of 3.9 % to reach 219.92 rupees against the US dollar in anticipation of substantial foreign currency inflows.
The Express Tribune states, “The rupee remained the best performing currency on a week-on-week basis.” The Pakistani rupee propped up due to significant incoming foreign currency coming from various sources across the globe and comparatively less outflow of foreign currency.
Last Friday was the 11th successive day when the Pakistani Rupee held the winning bar. One of the prime reasons behind the Pakistani currency’s strong position is the announcement of the current Finance Minister Ishaq Dar’s return from a five-year self-exile. Evidently, after taking charge, Ishaq continued the old policy of protecting the Pakistani rupee against the aggression of the USD.
He found the rupee undervalued at July’s all-time low of nearly 240 against a dollar and suspected commercial banks’ manipulation of the rupee value to serve vested interests.
Experts predict that the rupee will fall further as the US dollar strengthens against many major world currencies, global crude oil prices rebound to above $90 per barrel, fears of a European recession, a drop in Pakistan’s foreign currency reserves, and no significant increase in the country’s exports.
Where Does Indian Rupee Stand?
The Indian rupee extended its current decline against the US dollar, as strong US employment data reinforced expectations of further hefty Federal Reserve rate rises. The rupee dropped to a new low of 82.66, down from 82.33 in the previous session.
Concerns about oil prices, increasing Treasury rates, FII withdrawals, and offshore demand for the US dollar have recently pushed the rupee to new lows. Unlike in the past, the RBI’s efforts have failed to halt the rupee’s drop.