There's one thing in abundant supply in Pakistan. Conspiracy theorists. When the interbank dollar rate shot up from 204 on June 30th to 240 by July 31st, everything was normal but as soon as it dropped 10 rupees, you instantly start hearing all sorts of theories. Surely the fundamentals of the country can't change that much in a month that it justifies Rupee movement from 204 to 240 in such a short span of time?
The main reason for the speculation and in fact panic in FX market was the rumors about Pakistan's imminent default due to the possibility IMF may not renew their plan with a weak govt that may be on its way out. That was what fueling the fire behind massive Rupee depreciation each day from July 17th, the day when PTI won By elections, which just added to uncertainty regarding IMF deal. However that speculation and resulting hoarding/gambling of $ ended when IMF categorically informed that they are renewing the plan in 3rd week of August. News of significant reduction in import bill for month of July added to the positive sentiments.
However, that's too boring explanation for our awaam and since our nation has extensive expertise in linking all kinds of stuff with all kinds of other stuff, we discovered the 'actual cause' of Rupee appreciation i.e. Zawahiri's death. Bravo
