KARACHI  - The Pakistani rupee hit nearly an eight-month high on Tuesday against the dollar trading below the key psychological 100-to-a-dollar level.

Foreign currency dealers said that the rupee maintained its upward journey for the second consecutive day in both the interbank and kerb currency markets. In the early morning trade, rupee was trading at 99.90 to a dollar in the interbank market. “Dollar inflows in the market are more than the expectations of the market participants,” said Mohammad Sohail, Chief Executive of Topline Securities, referring to $750 million inflow under the Pakistan Development Fund. Dealers said that another $500 million is expected by the end of current month from the International Monetary Fund.

“All these inflows are having a positive impact on the rupee. I think it should now stabilize in the 98-102 level range going forward,” Sohail said. “Ishaq Dar’s expectations proved right and the market proved wrong[C1],” he added. Over couple of months back Finance Minister Ishaq Dar had said in a statement that the government would bring back the rupee below 100-to-a-dollar level. It may be pointed out that in the last three months Pakistani currency gained around 5 percent against the dollar recovering from the historic lows of 108.65 to a dollar in the first week of December 2013. The rupee lost a whopping 9 percent versus the greenback in the first six months of the current fiscal year.