PKR maintains one-month winning streak versus dollar, closes at Rs283.62

ISLAMABAD: In a remarkable display of resilience, the Pakistani rupee has sustained a winning streak against the US dollar for an entire month, marking a significant financial achievement.

The Pakistani currency maintained its upward trajectory against the US dollar, gaining 0.37 per cent in the interbank market on Thursday.

Now, the local currency stands at Rs283.62 per dollar, according to the State Bank of Pakistan, having strengthened by more than Rs23 against the greenback since September 5th.

Interbank closing #ExchangeRate for todayhttps://t.co/qtiNwkVcev#SBPExchangeRate pic.twitter.com/8OgjPQVjH4

— SBP (@StateBank_Pak) October 5, 2023

This upward trend can be attributed to a military-backed crackdown targeting currency smugglers, which has bolstered the rupee’s position in the international market.

On September 5, the Pakistani rupee faced a challenging period, plummeting to Rs307.10 against the dollar in the interbank market.

However, since the initiation of the military-backed crackdown on currency smugglers, hoarders, and speculators, the rupee has steadily embarked on a journey of recovery, earning the confidence of investors and analysts alike.

The recent closing rate of the rupee at Rs284.62 to the dollar, indicating a 0.37 per cent increase compared to the previous day’s close of Rs285.72, signifies a positive turn of events.

According to Geo News, industry experts attribute this surge to the diminishing demand for dollars in the black market, a consequence of the crackdown that eradicated illegal activities related to currency exchange.

Read more: FIA recovers over Rs3.86 billion in nationwide currency raids

Looking ahead, experts predict a positive near-term outlook for the rupee. However, the currency’s medium-term trajectory will be influenced by the nation’s economic fundamentals, particularly the conclusion of the International Monetary Fund’s review of the stand-by arrangement (SBA) and the status of foreign exchange reserves.

An upcoming IMF review in late October or early November 2023 is anticipated to provide valuable insights into the rupee’s future performance, shaping the financial landscape of Pakistan.