After witnessing impressive recovery against the greenback, Pakistani rupee has shown similar progress against UAE dirham.
The Pakistani rupee has appreciated by 1.5 rupees, or 4.3 per cent in UAE, in just five days after the victory of Imran Khan led Pakistan Tehreek-e-Insaaf (PTI) in the elections last week. The PTI victory has brought a positive impact on the markets.
On Monday, the Pakistan stock market remained bullish, with the benchmark KSE-100 index gaining 770 points to close at 43,557 points.
However, analysts predict that the positive impact is short term and would depend on the ability of the freshly elected PTI performance.
"In coming months, the Pakistan rupee can strengthen up to 31.30 versus the dirham, if the expectation about the new government comes true. For exchange rate to be strong, the stability of the government, the expected dollar inflow to the economy, keeping inflation in control, dollar interest rate hike and GDP growth rate are all important. I feel once discounting all these factors by 2018-end, the rupee may depreciate again to 34 against the dirham," said Rajiv Raipancholia, CEO, Orient Exchange, quoted Khaleej Times.
The rupee made historic gains in the money market on Monday against dollar. At the interbank the rupee rose by around Rs 4 in terms of the dollar for buying and selling at 124.25 and Rs 124.75 respectively. Meanwhile, at the open market, the rupee recovered over Rs 6 in relation the dollar for buying and selling at Rs 118.00 and Rs 123.00 respectively.
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