Pakistani rupee opens slightly firmer, markets await new finance minister
FILE PHOTO: A currency trader counts Pakistani Rupee notes as he prepares an exchange of U.S dollars in Islamabad, Pakistan December 11, 2017. REUTERS/Caren Firouz/File Photo
KARACHI, Pakistan : The Pakistani rupee opened slightly higher on Monday ahead of the announcement of a new finance minister, as the country grapples with an economic crisis exacerbated by devastating floods.
The rupee opened at 239.65 rupee a dollar and gained 2.15 rupee in the opening session, the forex exchange association said.
Finance Minister Miftah Ismail announced Sunday that he will be stepping down.
His likely replacement Ishaq Dar is known for keeping the rupee over-valued, or stable against the dollar.
They both come from the ruling party of Prime Minister Shehbaz Sharif, who is leading a united government comprising several political parties.
Dar has previously served as finance minister more than once under the Pakistan Muslim League - Nawaz (PML-N) party's rule.
"The Dar factor is at play. There are memories of how he kept the dollar rate stable," Fahad Rauf at Ismail Iqbal securities told Reuters.
The dollar is strengthening against most global currencies, and Pakistan is in a tight spot with less foreign reserves.
"There is no way (the rupee) can sustainably move against the tide in the current scenario," he said.
(Writing by Asif Shahzad; Editing by Kim Coghill)
