After recent polls, stability lay on the exchange rate as first day after elections results were announced in Pakistan. During the two months of the caretaker government, the local currency hit the rock bottom against the dollar.
“Uncertainty attached with the general elections is no more there which helped the currency market to show strength and the rupee gained about Rs1.10 per dollar on Thursday,” said General Exchange Companies Association of Pakistan Secretary Zafar Paracha.
The dollar was traded at maximum Rs128.90 in the open market compared to Rs130 just before the elections. The market was closed on Wednesday, the day of elections.
The market was not sure that the stability would further improve the exchange rate in favour of local currency as the country’s problems regarding the external front still remained there. They said only the uncertainty factor has been replaced with a hope for better performance by the future government. However, it has helped the sinking local currency to gain against the bullish dollar.