Karachi, October 9, 2023 – The Pakistani Rupee (PKR) extended its remarkable winning streak for the 23rd consecutive session against the US dollar, ending at PKR 281.65 in the interbank foreign exchange market.
This represents a gain of PKR 1.04 against the dollar compared to the previous Friday’s closing rate of PKR 282.69.
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This streak of gains is particularly notable as it follows a period of significant depreciation, with the rupee hitting a historic low of PKR 307.10 on September 5, 2023. Since then, the local currency has been on a consistent upward trajectory, appreciating by PKR 25.45 or 8.29 percent against the US dollar.
What makes this sustained appreciation even more remarkable is the backdrop of declining foreign exchange reserves. Official data from the State Bank of Pakistan (SBP) revealed that Pakistan’s foreign exchange reserves decreased to $13.03 billion for the week ending September 28, 2023, down by $132 million compared to $13.162 billion in the previous week ending September 22, 2023. This decline in reserves has raised concerns about Pakistan’s ability to meet its import requirements and maintain rupee stability in the international currency market.
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Analysts attribute the rupee’s continued strengthening to proactive administrative measures aimed at stabilizing the exchange rate. One key strategy has been a crackdown on currency smuggling and hoarding, which has effectively curbed speculative trading in the currency market. The State Bank of Pakistan has also canceled the licenses of several exchange companies involved in illegal forex transactions.
Additionally, experts suggest that the PKR’s resilience can be linked to expectations of external financial support from friendly nations like China and Saudi Arabia, as well as multilateral lenders such as the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
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Despite the challenges posed by declining reserves, Pakistan’s efforts to bolster its currency and seek external assistance demonstrate a proactive approach to maintaining economic stability in a volatile global financial landscape. The future trajectory of the Pakistani rupee remains closely monitored, as both internal and external factors continue to shape its performance.
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