Pakistan’s rupee advanced to the highest in more than two months as easing oil prices boosted sentiment for the currency.
(Bloomberg) — Pakistan’s rupee advanced to the highest in more than two months as easing oil prices boosted sentiment for the currency.
The rupee gained 0.4% to 282.7 per dollar on Friday, the highest since mid-July, according to data compiled by Bloomberg. The currency surged more than 8% in the past month to become the top performer in the world.
“The decline in oil prices will help narrow the trade gap,” said Samiullah Tariq, head of research at Pakistan Kuwait Investment Co. in Karachi. “Together with the government’s crackdown on dollar smuggling and illegal trade of the currency, people are turning more bullish on the rupee.”
Pakistan’s government intensified efforts to defend the currency after the rupee slumped to a record-low in September, with officials clamping on the illegal dollar trade and smuggling. The reprieve in crude prices is also boosting sentiment toward the oil-importing nation, with stocks set for their biggest weekly gain since early August.
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