Pakistani rupee gains Rs0.79 versus US dollar to close at Rs276.83

WEB DESK: On Monday, the Pakistani rupee continued its appreciation streak in the interbank market against the US dollar (USD) for the 28th consecutive session, closing the day at Rs276.83 per USD, gaining Rs0.79.

Interbank closing #ExchangeRate for todayhttps://t.co/ibl1yWdtfI#SBPExchangeRate pic.twitter.com/gUNSFzqWwg

— SBP (@StateBank_Pak) October 16, 2023

Around 10 am, the local unit was observed at Rs276.48, reflecting a notable increase of Rs1.14 in the interbank market.

This positive momentum follows the previous week’s performance, where the rupee showcased its strength by gaining 1.79 per cent over five sessions, ultimately closing at Rs277.62 against the US dollar in the inter-bank market.

This remarkable turnaround began after the Pakistani rupee hit a record low of Rs307.1 against the US dollar on September 5 in the interbank market. Since then, it has embarked on one of the longest and most impressive appreciation runs in recent memory.

A key factor contributing to this strengthening trend has been the stringent measures implemented by authorities.

A crackdown against smuggling activities and increased regulatory control over exchange companies (ECs) have played a significant role in stabilising the currency.

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The central bank, in particular, has intensified its vigilance over exchange companies, taking strict action against those found to be in serious violation of regulations.

Notably, in the last month alone, authorization for nine exchange companies has been suspended due to grave breaches of the rules.

This concerted effort has undoubtedly bolstered confidence in the Pakistani rupee, leading to its sustained upward trajectory in the financial markets.