Rupee gains further ground against US dollar

KARACHI: The Pakistani rupee continued its ascent against the US dollar, registering a 0.37 percent gain in the initial trading hours on Monday in the inter-bank market.

By midday, the rupee had reached 281.65, marking an increase of Rs1.04 in the inter-bank market.

During the previous week, the Pakistani rupee had shown strength, recording a 1.8 percent gain over five sessions and closing at 282.69 against the US dollar in the inter-bank market.

Over the course of the week, the interbank rate for the US dollar had already witnessed a substantial decrease of over Rs 5, with the interbank exchange rate for the US dollar dropping by Rs 5.05, resulting in a valuation of Rs 282.69. The dollar rate had dropped significantly to as low as Rs 24.41, following a previous all-time high in the interbank market.

Gold prices in Pakistan show signs of recovery after recent decline

In the open market, the US dollar had also experienced a significant decline of Rs 5.50, reaching a rate of Rs 282.50. This decline in the open market had brought the US dollar to its lowest level in recent times, marking a notable drop of Rs 50.50 from its peak.

This series of gains extended the rupee’s winning streak to 22 sessions and led to the rupee’s closure at its highest level since July. Simultaneously, the discrepancy between rates in the open market had narrowed to negligible levels, fulfilling a key condition of the agreement with the International Monetary Fund (IMF).

These positive developments can be attributed to various administrative measures, including a crackdown on smuggling, as well as structural reforms in the Exchange Companies’ sector.