Karachi, October 10, 2023 – The Pakistani Rupee (PKR) has demonstrated remarkable strength by appreciating by 8.66 percent against the US dollar since hitting a historic low of PKR 307.10.
On Tuesday, the rupee closed at PKR 281.65 to the dollar, marking a gain of PKR 25.59 or 8.66 percent against the greenback since September 5, 2023, when the currency reached its all-time low.
READ MORE: Pakistani Rupee Reaches Record 23rd Straight Gain Against Dollar, Closes at PKR 281.65
This unprecedented winning streak has extended to 24 consecutive sessions, showcasing the resilience of the Pakistani currency. The local unit also gained PKR 1.14 against the dollar compared to the previous day’s close of PKR 282.79 in the interbank foreign exchange market.
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) reveals that the country’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 has raised concerns about Pakistan’s ability to meet its import requirements and maintain the stability of the Pakistani rupee in the international currency market.
READ MORE: PKR Expected to Maintain its Winning Streak Amid Afghan Transit Restrictions
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, effectively curbing 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 such as China and Saudi Arabia, as well as multilateral lenders like the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
READ MORE: Pakistani Rupee (PKR) Continues to Consolidate Against Dollar Amid FX Plunge
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.