Pakistani rupee records 18th consecutive gain against US dollar, closes at Rs286.76

In a remarkable display of strength, the Pakistani rupee marked its 18th consecutive gain against the US dollar in the interbank market on Monday, gaining 0.34 per cent.

According to the State Bank of Pakistan (SBP), the local currency settled at Rs286.76 after an increase of Re0.98.

Interbank closing #ExchangeRate for today https://t.co/K9pF3QxMS3#SBPExchangeRate pic.twitter.com/gXBbpXqugl

— SBP (@StateBank_Pak) September 28, 2023

The relentless surge of the rupee against the greenback has been a topic of keen interest, and experts attribute this remarkable trend to stringent measures implemented by the government.

Notably, a crackdown against smuggling and stringent controls on the exchange companies (ECs) sector have played a pivotal role in bolstering the rupee’s performance.

During the previous week, the rupee experienced another impressive uptick, rising by 1.4 per cent to settle at Rs287.74 against the US dollar in the interbank market. This positive momentum extended the rupee’s winning streak to 17 successive sessions, reflecting a robust and stable economic outlook.

One of the key factors contributing to this surge was the rupee’s status as the best-performing currency in the world for the month of September.

Closing the month with a remarkable gain of 6.2 per cent, the rupee’s performance stood in stark contrast to its overall depreciation, which had reached nearly 26 per cent in the first eight months of 2023.

Meanwhile, oil prices, a key indicator of currency parity, remained steady on Monday, capturing investor focus with a tight global supply outlook.

The market sentiment also saw a positive shift due to a last-minute deal that avoided a US government shutdown, restoring some risk appetite among investors.

The consistent strengthening of the Pakistani rupee against the US dollar serves as a testament to Pakistan’s economic stability and the effectiveness of the measures undertaken by the government and financial authorities.

As the global economic landscape continues to evolve, Pakistan stands as a beacon of stability in the currency markets, offering a positive outlook for the nation’s financial future.