Karachi, September 12, 2023 – The Pakistani Rupee (PKR) continued its impressive recovery for the fifth consecutive trading session against the US Dollar (USD) on Tuesday, following its historic low point on September 5, 2023.
In the interbank foreign exchange market, the PKR gained significant ground, strengthening by PKR 1.27 to close at PKR 299.89 against the USD. This marked a remarkable improvement from the previous day’s closing rate of PKR 301.16.
The journey to this recovery began when the PKR plummeted to an all-time low of PKR 307.10 against the USD on September 5, 2023. Since then, the local currency has undergone a remarkable turnaround, surging by a substantial PKR 7.21 or 2.35 percent in just one week, culminating in its strong performance on September 12, 2023.
Currency experts are attributing this remarkable shift in fortunes to a confluence of factors, with one of the most influential being the relentless crackdown initiated by authorities against currency smugglers and hoarders. This intensified effort to combat illegal currency trading has resulted in a significant influx of US Dollars into the formal banking system, subsequently bolstering the PKR.
In addition to these efforts, exporters are actively participating in the PKR’s resurgence. They are converting their USD holdings into PKR through various banking channels, contributing to the increased demand for the Pakistani currency.
The recent rally in the PKR’s value comes as a welcome relief after a period of struggle against the USD, which saw it hit an all-time low on September 5, 2023. The swift actions taken by authorities to combat illicit currency activities have evidently paid off, resulting in a substantial recovery for the PKR.
The dynamics of the currency market remain fluid, and experts are closely monitoring the situation as it evolves. The resurgence of the PKR against the USD is viewed as a positive development for Pakistan’s economy, as a stronger local currency has the potential to stabilize prices, alleviate inflationary pressures, and enhance investor confidence.
As the crackdown against currency smuggling and hoarding persists, and with exporters opting for official channels, the performance of the Pakistani Rupee in the foreign exchange market remains a topic of keen interest for investors, businesses, and policymakers alike.
For the most up-to-date information on the PKR-USD exchange rate and other financial news, we recommend staying informed through reliable sources and consulting financial experts within Pakistan.