Rupee’s longest winning streak: Closes below Rs278 against US dollar

WEB DESK: In a remarkable streak, the Pakistani rupee extended its victorious run against the US dollar, marking its 27th consecutive gain in the inter-bank market on Friday.

The currency achieved an impressive 0.35 per cent increase, settling at Rs277.62, after a notable surge of Re0.96, according to the State Bank of Pakistan (SBP).

Just the previous day, the rupee had exhibited a similar trend, appreciating by 0.33 per cent to reach Rs278.58. This sustained surge against the US dollar is one of the longest seen in the inter-bank market.

Interbank closing #ExchangeRate for todayhttps://t.co/QIg5sty6p2#SBPExchangeRate pic.twitter.com/Bex2xUMoIx

— SBP (@StateBank_Pak) October 13, 2023

This remarkable feat is attributed significantly to the government’s strict measures against smuggling and hoarding of foreign currency, coupled with substantial reforms in the Exchange Companies’ sector.

In a related development, the State Bank of Pakistan’s (SBP) foreign exchange reserves experienced a noteworthy uptick.

During the week ending October 6, 2023, these reserves increased by $31 million, reaching a total of $7.646 billion, compared to the previous figure of $7.615 billion as of September 28, 2023.

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Globally, the US dollar maintained its strength on Friday, applying pressure on various currencies.

This was spurred by stronger-than-expected US consumer inflation, reigniting expectations that the Federal Reserve might need to maintain higher interest rates for an extended period.