Rupee maintains upward trajectory against US dollar

KARACHI: The Pakistani rupee extended its appreciation run against the US dollar, gaining another 0.36 percent  during the opening hours of trading in the inter-bank market on Thursday.

At midday, the rupee was hovering at 278.50, an increase of Rs1.01, in the inter-bank market.

On Wednesday, the rupee had appreciated 0.36 percent to settle at 279.51.

This is one of the longest appreciation runs seen by the rupee against the US dollar in the inter-bank market, and comes in large part due to the authorities’ crackdown on smuggling and hoarding of foreign currency as well as reforms in the Exchange Companies’ sector.

This is the first time in three months that the greenback has dropped below the Rs280 mark in the interbank market. Similarly, in the open market, the American currency fell below the 280 mark to settle at Rs279 after a drop of Re1.

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In the last one month, the dollar has lost 9 percent in its value in the open market, while in the interbank trade it has dropped by 17.5 percent.

The State Bank of Pakistan (SBP) on Wednesday also suspended the authorisation of five Exchange Companies of ‘B’ Category for noncompliance of rules and regulations.

The SBP has become more vigilant on exchange companies and strict actions are being taken. During the last one month, authorisation of 9 exchange companies have been suspended on serious violations.