Rupee gains on FATF’s verdict

The second consecutive session for the continuous recovery of Pakistani Rupees against the United States Dollar which is Rs0.43 against the US dollar in the interbank market is a good go. Rupee gains on FATF’s verdict.

The released data by the State Bank of Pakistan (SBP) indicates that the local currency closed at Rs220.41 per dollar post appreciation 0.20% compared to Friday’s close of Rs220.84.

The market experts say that the gain improvement came right after Pakistan was removed from Financial Action Task Force (FATF) on Friday. Pakistan has been removed from 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. The same was announced in a press conference by the FATF’s president, T Raja Kumar.

The experts say that this is a good sign for the country as it will boost the Pakistan’s perception. Moreover, it will also allow the country to attract foreign investment in the long run.

Pakistani rupee is expected to trade at 216 to the dollar in the next 10 days. Moreover, 210 to the dollar in the following 30 days, according to Tresmark.

“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.

It also added that the real test for the Pakistani rupee will be six month from now.