Goldman Sachs Group Inc. has issued a warning regarding the recent gains in Pakistani rupee and believe that those are ‘short-lived’.
While the Pakistani rupee has been one of the top-performing currencies globally over the past two months, Goldman Sachs believes that these gains may not be sustained due to the country’s financing risks.
The rupee fell to a record low of 307 to the dollar in early September. But since then, it has gone up over 8% and now trades at 280 to the dollar.
This is the biggest increase of any currency in the world over the past month. The main reason for this is that the government has stopped illegal trading of dollars.
However, according to a report by Goldman analysts led by Kamakshya Trivedi, the recent appreciation of the Pakistani rupee is expected to be short-lived.
