Pakistani rupee further appreciates against US dollar

KARACHI: The Pakistani rupee strengthened by 93 paisas against the US dollar in the interbank market on Friday, as the government cracked down on illegal currency dealers and black market continue.

The rupee closed at 282.69 per dollar, compared with 283.62 on Thursday, according to the State Bank of Pakistan. The currency has gained Rs24.41, or 7.9%, since hitting a record low of Rs307 on September 5.

The rupee also appreciated in the open market, where it traded at 284.50 per dollar on Friday, up from 285.50 on Thursday, according to the Forex Association of Pakistan.

The government has launched a series of measures to curb the illegal outflow of dollars and stabilise the exchange rate, including arresting currency dealers, seizing foreign currency and tightening regulations on money transfers.

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The rupee’s appreciation has eased inflationary pressures and improved business confidence in the country, analysts say.

“The crackdown on illegal currency dealers has created a shortage of dollars in the market and increased the demand for rupees,” said Muhammad Sohail, chief executive officer of Topline Securities, a Karachi-based brokerage firm.

He said the rupee could appreciate further in the coming weeks, as the government expects to receive more foreign inflows from friendly countries and international lenders.