Rupee makes massive gain against dollar in mid-day trading

Rupee makes massive gain against dollar in mid-day trading

KARACHI – The Pakistani Rupee exhibited significant strength in mid-day trading on Thursday, gaining 42 paisas against the US Dollar.

The dollar is now being traded at Rs138.16 in the interbank foreign exchange market, marking a noteworthy improvement for the Pakistani currency.

The positive momentum in the exchange rate follows the conclusion of trading on Wednesday, where the rupee/dollar rate settled at Rs138.16. Currency experts attribute this sudden surge to the inflow of $2 billion from both Saudi Arabia and the United Arab Emirates (UAE), aimed at providing crucial financial assistance to Pakistan.

The financial aid from these Gulf nations has played a pivotal role in helping the Pakistani Rupee recover against the greenback. Analysts suggest that this injection of funds has not only stabilized the currency but has also instilled confidence in the forex market, contributing to the observed improvement.

Additionally, government measures aimed at curbing the import of luxury and non-essential items have been cited as a contributing factor in discouraging the demand for the US dollar. By implementing policies to reduce the importation of non-essential goods, the government has not only addressed the trade imbalance but has also positively impacted the local currency.

Currency experts emphasize that such measures are crucial for maintaining a stable exchange rate and safeguarding the economic interests of the country. The deliberate efforts to reduce dependency on foreign goods have not only curtailed the demand for the US dollar but have also helped build resilience against external economic pressures.

This week alone, the local currency has witnessed a commendable gain of 63 paisas in the interbank foreign exchange market. The consistent positive trend over the week underscores the effectiveness of both foreign aid and government policies in bolstering the Pakistani Rupee.

While the external financial support from Saudi Arabia and the UAE has provided immediate relief, the government’s commitment to structural reforms and prudent economic policies is being recognized as a key factor in sustaining this positive trajectory. Experts are optimistic that continued efforts to strengthen the economy will not only benefit the currency but will also contribute to overall economic stability in the long run.

As the Pakistani Rupee continues to exhibit resilience in the face of economic challenges, market participants are closely monitoring further developments. The central bank’s proactive measures, coupled with international support and government policies, are poised to shape the trajectory of the currency in the coming weeks.

The recent surge in the Pakistani Rupee against the US Dollar reflects a combination of foreign financial assistance and effective government policies. The positive momentum underscores the importance of strategic economic measures in maintaining currency stability and fostering economic resilience.