Crackdown on illegal activities catapult Rupee to a two-month high

KARACHI: In a significant development this week, the US dollar witnessed a sustained decline against the Pakistani rupee, reaching a two-month low in both the interbank and open market.

The weekly currency report highlights the impact of intensified regulatory actions against entities engaged in questionable activities, which have driven the dollar’s depreciation and bolstered the rupee’s value by 1.38 percent against the greenback. Additionally, the gap between interbank and open market exchange rates for the dollar has narrowed to a mere 0.09 percent.

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Market sentiment was notably affected by the prospects of a stringent crackdown on illicit sectors, prompting widespread dollar sales as speculative pressures waned. Consequently, the interbank exchange rate for the dollar hit a seven-week low, while the open market rate reached an 11-week low.

This strengthening of the rupee can be attributed to the robust oversight and operational measures implemented against money changers and exchange companies. In parallel, other major international currencies, including the pound, euro, dirham, and riyal, also experienced depreciation throughout the week’s trading activities.

The US dollar recorded a significant drop in value this week, shedding Rs 4.03 to close at Rs 287.73 in the interbank market. In the open market, a decline of Rs 3.50 was observed, with the dollar settling at Rs 288.