KARACHI: The rupee continued its upward trajectory for the fifth consecutive day on Friday, as it was closed at Rs224.04, appreciating by Rs2.11 against the greenback, in the interbank market after major political and economic developments this week.

“Sentiment in [stock] market has generally improved after the International Monetary Fund update,” Fahad Rauf, the head of research for Ismail Iqbal Securities, told Aaj News. “The rupee will further sustain and come down to 205 to 220.”

The State Bank of Pakistan shared the update in a tweet. The dollar was being traded at Rs220 in the open market, dealers said. The open and interbank currency markets run on confidence. Rates of currencies are one to two rupees less in the interbank market in order to support traders and investors.

Aaj News had approached Rauf, who has a BSc (Hons) degree from Oxford Brookes University, for comments on the massive increase in the rupee value this week. The rupee has so far gained Rs15.27 this week.

Before commenting on the prevailing economic situation, the expert questioned was the value of the dollar, which reached Rs250 in the open market last month, was fair.

“Ill-liquidated market had contributed to such a trend,” he said, adding that there was not much trading and only those people traded who were in urgent need.

The expert also highlighted the global inflation, which has impacted the “helping hands” of Pakistan. This international situation has led to strict conditions for loans.

The central bank and the finance ministry last week said that the rupee has been overshot temporarily but it was expected to appreciate in line with fundamentals over the next few months.

“Around half of the Rupee depreciation since December 2021 can be attributed to the global surge in the US dollar, following historic tightening by the Federal Reserve and heightened risk aversion,” it said in a statement. They added that it was also driven by domestic fundamentals while noting the widening of the current account deficit, especially in the last few months.

“Political stability is 100% needed in this situation,” Rauf replied to a query, adding that it improves investors’ confidence and improves the Eurobond situation.

He called for decisions to support the economy. “Rupee will further gain if the IMF programme goes as planned.”