I agree with that
My friend, I trade dollar on daily basis and follow Forex news on hourly basis so let me tell you something.
Rupee did not only increase because PKR got stronger... It was dollar which got weaker. It is true because USD lost value against Euro, GBP and several other major pairs at the same time. Rupee gained value due to various reasons I mentioned earlier... some of which are
- Dollar became weaker (and if one currency becomes weaker, rival currency is bound to rise)
- Rupee had been highly undervalued from 90 to 110 during the election time and post-election period so it was bound to rebound
- The confidence of foreign investors was too low and after the elections, the confidence was slightly brought back so more dollar inflow was widely seen in the country
- More Forex reserves after blocked payment by IMF and USAid were made
- Massive increase in remittance by overseas Pakistanis after the government decided to offer higher rate to people sending through legal channels such as the bank
- The atmosphere of dollar gaining value was damaged by economists and an impression was created that if you stock dollar, you may incur heavy losses
- That 1 billion dollar of aid from Saudi Arabia meant sudden rise in currency value out of no where
It is a matter of demand and supply. There was a shortage of dollar in the country so it was rising and suddenly it was coming from everywhere... So the rebound settled the price closer to 97 once again... and USD was not gaining strength so it could not regain the space thus far