Karachi, October 12, 2023 – The Pakistani Rupee (PKR) marked a historic milestone by concluding a 26-session winning streak against the US dollar, showcasing an exceptional recovery.
The rupee had reached a historic low of PKR 307.10 against the dollar on September 5, 2023. However, since then, it has demonstrated remarkable resilience, staging an impressive comeback of PKR 28.52 or a 9.29 percent gain against the greenback.
READ MORE: Rupee Remains Unbeatable Against Dollar for 25th Straight Session; Ends at PKR 279.51
On October 12, 2023, the rupee’s winning streak continued as it ended at PKR 278.58 to the dollar, a significant improvement from the previous day’s closing rate of PKR 279.51 in the interbank foreign exchange market.
This remarkable performance gains added significance in light of declining foreign exchange reserves. Official data from the State Bank of Pakistan (SBP) revealed that the country’s foreign exchange reserves had decreased to $13.03 billion for the week ending September 28, 2023.
This represented a $132 million decline compared to the previous week ending September 22, 2023, raising concerns about Pakistan’s ability to meet its import requirements and maintain the stability of the Pakistani rupee in international currency markets.
The enduring strength of the PKR can be attributed to proactive administrative measures that have been implemented to stabilize the exchange rate. Key strategies in this endeavor included a crackdown on currency smuggling and hoarding, effectively curbing speculative trading in the currency market.
READ MORE: Rupee Bulldozes Dollar by 8.66% Since Falling to Historic Low
The State Bank of Pakistan has further demonstrated its commitment to this cause by revoking the licenses of several exchange companies involved in illegal forex transactions.
Moreover, experts suggest that the PKR’s resilience is linked to expectations of external financial support from friendly nations, including China and Saudi Arabia, as well as from multilateral lenders such as the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
While declining foreign exchange reserves pose challenges, Pakistan’s proactive approach to strengthen its currency and seek external financial assistance underscores its commitment to maintaining economic stability amidst a volatile global financial landscape. The future trajectory of the Pakistani rupee continues to be closely monitored, as both internal and external factors play pivotal roles in shaping its performance.
READ MORE: Pakistani Rupee Reaches Record 23rd Straight Gain Against Dollar, Closes at PKR 281.65
This sustained appreciation of the rupee against the dollar signifies a significant achievement for Pakistan’s economy, fostering hope for continued progress and stability in the future. As the country navigates these challenging economic times, the world watches with great interest, eager to see how Pakistan’s financial strategy unfolds.
