KARACHI: The Pakistani rupee gained strength against the US dollar on Wednesday, appreciating by 11 paisas in the interbank foreign exchange market. This upward movement was largely attributed to improved inflows from workers’ remittances and export receipts, which provided much-needed support to the local currency.
By the end of the trading session, the rupee closed at Rs160.28 per dollar, marking a slight improvement from the previous day’s closing rate of Rs160.39. Currency dealers noted that the market experienced a steady supply of the greenback throughout the day, which contributed to the rupee’s appreciation.
According to market sources, the inflows of foreign exchange from overseas Pakistanis and export proceeds helped stabilize the rupee, ensuring a balance between supply and demand. The increased inflows played a crucial role in offsetting the pressure exerted by rising demand for the US dollar, particularly from importers and corporate entities.
Despite the consistent demand for foreign currency to fulfill import payments and corporate obligations, the strong inflows allowed the rupee to maintain its positive momentum. Currency experts believe that if the current trend of healthy foreign exchange inflows continues, the rupee may witness further stability in the coming days.
Dealers also highlighted that the market’s liquidity improved significantly due to the timely inflows of remittances from overseas Pakistanis, a key source of foreign exchange earnings for the country. Additionally, increased export proceeds have provided further support to the rupee, easing concerns over external payment pressures.
The strengthening of the rupee comes at a crucial time when Pakistan is focusing on maintaining exchange rate stability to manage inflation and support economic growth. The government and the State Bank of Pakistan have been working on measures to attract higher inflows, ensuring a steady supply of foreign currency in the market.
Market analysts suggest that while the rupee has gained ground in the short term, its long-term stability will depend on consistent inflows and effective management of external financial obligations. As inflows from remittances and exports continue to support the local currency, the rupee is expected to hold its ground against excessive volatility in the forex market.