Karachi, October 3, 2023 – The Pakistan Rupee (PKR) continues to display remarkable strength against the US Dollar, maintaining its unbeatable streak for the 19th consecutive session. The day concluded with the PKR standing at PKR 285.72 in the interbank foreign exchange market.
This recent closing rate marks a gain of PKR 1.04 in the rupee’s value compared to the last closing rate of PKR 286.76. This resurgence comes on the heels of a period of exchange rate volatility that saw the PKR hit an all-time low of PKR 307.10 against the US Dollar on September 5, 2023.
READ MORE: Pakistani Rupee Maintains Strong Streak Against Dollar, Closes at PKR 286.76
Analysts attribute the sustained appreciation of the PKR against the US Dollar to a series of administrative measures aimed at stabilizing the exchange rate. These measures include a significant crackdown on currency smuggling and hoarding.
The PKR’s remarkable rebound in September 2023 has been nothing short of impressive, with a gain of 6.3 percent against the US Dollar over the course of the month.
READ MORE: PKR Emerges as September Top Performer in Currency World
A substantial crackdown on illegal currency dealers in the informal gray market, where dollars were traded at a premium over the official rate, has played a pivotal role in stabilizing the exchange rate.
Pakistan has experienced increased dollar inflows from exporters and remittances, providing crucial support to the PKR.
Growing expectations of external financing from friendly nations and multilateral organizations have boosted investor confidence in the outlook for the rupee.
In contrast to many Asian currencies that experienced declines against the US Dollar due to the US Federal Reserve’s announcement of prolonged high-interest rates, the PKR has stood out as a strong performer in the region. Currencies like the Thai baht and the South Korean won depreciated by more than 2 percent each during the same period.
READ MORE: Pakistani Rupee Ends September on Winning Streak, Closes at PKR 287.74 Against Dollar
The State Bank of Pakistan has played a proactive role by canceling the licenses of several exchange companies involved in illegal forex transactions, further contributing to the rupee’s stability.
Analysts continue to attribute the PKR’s strength to the anticipation of external financial support from friendly nations such as China and Saudi Arabia, as well as from multilateral lenders like the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
READ MORE: Pakistani Rupee Continues Appreciation Against Dollar for 16th Straight Session
The sustained strength of the Pakistani Rupee against the US Dollar represents a positive development for Pakistan’s economy. It helps stabilize prices and improves investor confidence in the country’s financial markets, indicating a potentially brighter economic outlook for the nation.
