Karachi, October 17, 2023 – The US dollar made a notable gain against the Pakistani Rupee (PKR), putting an end to a remarkable winning streak of 28 straight sessions on Tuesday.
The exchange rate recorded a depreciation of 20 paisas in rupee value, closing at PKR 277.03 against the dollar, a slight uptick from the previous day’s closing rate of PKR 276.83 in the interbank foreign exchange market.
READ MORE: Pakistani Rupee Remarkable Rally Continues for 28th Straight Session Against Dollar
Just a day earlier, the PKR had continued its astonishing rally against the US dollar for the 28th consecutive session, reaching a rate of PKR 276.83 in the interbank foreign exchange market. This achievement is particularly significant, given that the local currency had hit a historic low of PKR 307.10 on September 5, 2023. Since then, the PKR has displayed impressive resilience, recovering by PKR 30.27 or 9.86% against the US dollar.
The recent gain in the dollar’s value can be attributed to increased payments for imports, indicating improvements in the Pakistani economy. Analysts suggest that industry confidence has been bolstered by the government’s recent actions.
READ MORE: Dollar Weakens for 27th Straight Session in Pakistan to End at PKR 277.62
Over the past month and a half, the appreciation in the rupee’s value can be largely attributed to the significant increase in foreign exchange reserves held by the State Bank of Pakistan (SBP). The central bank reported a substantial weekly rise of $31 million in its foreign exchange reserves, pushing the SBP’s official foreign exchange reserves to $7.647 billion for the week ending on October 6, 2023, compared to $4.616 billion the previous week, ending on September 28, 2023.
READ MORE: Pakistani Rupee Achieves 26-Session Winning Streak, Ends at PKR 278.58 Against the Dollar
The sustained strength of the PKR can be attributed to a series of proactive administrative measures aimed at stabilizing the exchange rate. These measures include a crackdown on currency smuggling and hoarding, effectively curbing speculative trading in the currency market. The State Bank of Pakistan’s commitment to this cause has been further underscored by the revocation of licenses of several exchange companies engaged in illegal forex transactions.
READ MORE: Rupee Remains Unbeatable Against Dollar for 25th Straight Session; Ends at PKR 279.51
The remarkable resilience and strengthening of the Pakistani Rupee against the US dollar indicate a positive trajectory for the country’s economy, reflecting prudent monetary and exchange rate policies. This development instills a sense of stability and confidence among investors and the business community, which is crucial for economic growth and stability. It’s a testament to the effectiveness of measures taken to ensure economic stability and resilience in the face of external economic challenges.
