Karachi, October 11, 2023 – In a remarkable show of resilience, the Pakistani Rupee (PKR) continued its impressive streak against the US dollar for the 25th consecutive session, closing at an impressive PKR 279.51, gaining PKR 1 from the previous day’s closing rate of PKR 280.51.
This persistent surge in the local currency’s value marks an astonishing turnaround since September 5, 2023, when the PKR had slumped to its lowest point at PKR 307.10 against the greenback.
READ MORE: Rupee Bulldozes Dollar by 8.66% Since Falling to Historic Low
Over the past month, the Pakistani Rupee has staged an impressive comeback, accumulating gains of PKR 27.59, equating to a staggering 9 percent appreciation against the US dollar.
This remarkable performance gains further prominence when viewed against the backdrop of declining foreign exchange reserves. Official data from the State Bank of Pakistan (SBP) reveals that the country’s foreign exchange reserves dipped to $13.03 billion for the week ending September 28, 2023, down by $132 million compared to the previous week ending September 22, 2023. This decline has raised concerns about Pakistan’s ability to meet its import requirements and sustain the stability of the Pakistani rupee in the international currency market.
READ MORE: Pakistani Rupee Reaches Record 23rd Straight Gain Against Dollar, Closes at PKR 281.65
The enduring strength of the PKR is attributed to proactive administrative measures implemented to stabilize the exchange rate. A pivotal strategy in this effort has been the crackdown on currency smuggling and hoarding, effectively curbing speculative trading in the currency market. The State Bank of Pakistan has further intensified its commitment to this cause by revoking the licenses of several exchange companies involved in illegal forex transactions.
Furthermore, experts point to the PKR’s resilience as being linked to expectations of external financial support from friendly nations such as China and Saudi Arabia, in addition to multilateral lenders like the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
READ MORE: PKR Expected to Maintain its Winning Streak Amid Afghan Transit Restrictions
While declining foreign exchange reserves pose challenges, Pakistan’s proactive approach to strengthen its currency and seek external financial assistance underscores its commitment to maintaining economic stability amidst a volatile global financial landscape. The future trajectory of the Pakistani rupee continues to be closely monitored, as both internal and external factors play pivotal roles in shaping its performance.
This sustained appreciation of the Rupee against the Dollar signifies a significant achievement for Pakistan’s economy, fostering hope for continued progress and stability in the future. As the country navigates these challenging economic times, the world watches with great interest, eager to see how Pakistan’s financial strategy unfolds.
READ MORE: Pakistani Rupee (PKR) Continues to Consolidate Against Dollar Amid FX Plunge
