Karachi, October 2, 2023 – The Pakistani Rupee (PKR) continued its impressive performance against the US dollar, extending its unbeaten streak for the 18th consecutive session.
In the interbank foreign exchange market on Monday, the PKR closed at an impressive rate of PKR 286.76 per dollar.
READ MORE: PKR Emerges as September Top Performer in Currency World
This recent closing rate represents a gain of 98 paisas in rupee value from the previous Thursday’s closing rate of PKR 287.74. This remarkable turnaround follows a period of volatility during which the PKR hit an all-time low of PKR 307.10 against the US dollar on September 5, 2023.
Analysts attribute the sustained appreciation of the PKR against the US dollar to a series of administrative measures aimed at stabilizing the exchange rate. These measures have included a massive crackdown on currency smuggling and hoarding.
READ MORE: Pakistani Rupee Ends September on Winning Streak, Closes at PKR 287.74 Against Dollar
The rupee’s resurgence in September 2023 has been nothing short of remarkable, with a gain of 6.3 percent against the US dollar over the course of the month. Several factors have contributed to this impressive performance:
Crackdown on Illegal Currency Dealers: A significant crackdown on illegal currency dealers in the informal gray market, where dollars were being traded at a premium over the official rate, played a pivotal role in stabilizing the exchange rate.
Increased Dollar Inflows: Pakistan has seen increased dollar inflows from exporters and remittances, providing much-needed support to the PKR.
Expectations of External Financing: Growing expectations of external financing from friendly nations and multilateral organizations have boosted investor confidence in the rupee’s outlook.
READ MORE: Pakistani Rupee Continues Appreciation Against Dollar for 16th Straight Session
In contrast to many Asian currencies that experienced declines against the US dollar due to the US Federal Reserve’s announcement of prolonged high-interest rates, the PKR has stood out as a strong performer in the region. Currencies like the Thai baht and the South Korean won depreciated by more than 2 percent each during the same period.
The State Bank of Pakistan also played a proactive role by canceling the licenses of several exchange companies involved in illegal forex transactions, further contributing to the rupee’s stability.
READ MORE: PKR Makes Record 5.6% Gain Against US Dollar in Unprecedented Winning Streak
Analysts continue to attribute the PKR’s strength to the anticipation of external financial support from friendly nations such as China and Saudi Arabia, as well as from multilateral lenders like the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
The sustained strength of the Pakistani Rupee against the US dollar represents a positive development for Pakistan’s economy, helping to stabilize prices and improve investor confidence in the country’s financial markets.
