Pakistani rupee continues to strengthen against the US dollar

International Markets: For the second session in a row, the Pakistani rupee (PKR) strengthened versus the US dollar. The local unit has risen in value in light of anticipated dollar infusions from foreign lenders to fund Pakistan's relief and rehabilitation efforts following the catastrophic floods.

On September 23, the PKR ended a 15-session losing streak versus the dollar. This came as the economy was still reeling from devastating floods. The PKR increased by 3.76 points against the dollar in intraday trade on Monday on the interbank market, rising from the session's close of 239.65 to 235.99. The PKR nearly hit a record low of 240 against the dollar last week, but the market recovered as a result of various encouraging signals.

According to ECAP General Secretary Zafar Paracha, the market appears to be reacting to the arrival of PML-N leader Ishaq Dar and the announcement that he will succeed Miftah Ismail as the Finance Minister.

Five years after going into self-imposed exile in London, Dar will return to Pakistan on Monday with Prime Minister Shehbaz Sharif to "assist" the government's efforts to revive the cash-strapped economy by taking up the crucial responsibilities of the finance minister.

In addition to Dar's announcement, Paracha pointed out that the market participants were also noting political stability after PTI Chairman Imran Khan said he could return to Parliament if the alleged cypher allegedly used to conceal threatening text behind the overthrow of his government is investigated.

The currency trader also claimed that the market's expectations were raised by the World Bank's declaration regarding the repurposing of funds, the International Monetary Fund's efforts to assist Pakistan, and the assistance of the Asian Development Bank.

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